Capital cost
From Biocrawler, the free encyclopedia.
This is the amount on which you first claim CCA. The capital cost of a depreciable property is usually the total of the purchase price, not including the cost of land (which is not depreciable);the part of your legal, accounting, engineering, installation, and other fees that relates to the purchase or construction of the depreciable property (not including the part that applies to land);the cost of any additions or improvements you made to the property after you acquired it, provided you have not claimed these costs as a current expense; and soft costs (such as interest, legal and accounting fees, and property taxes) related to the period you are constructing, renovating, or altering the building, if you have not deducted these expenses as current expenses.
Legal and accounting fees for the purchase of a rental property are allocated between the cost of the land and the capital cost of the building. If land is acquired for rental purposes or for construction of a rental property, the legal and accounting fees apply to the land.
