Move an expense onto the capital schedule

You recorded a cost as an ordinary expense and then realised it was a capital improvement, not a repair. You do not have to delete it and start again. Move it onto the capital schedule and pick the CRA capital cost allowance (CCA) class it belongs in. This is tooling, not tax advice.

Repair or improvement

A repair keeps the property the way it is and is deducted this year. An improvement makes it better or makes it last longer, and is added to the property's cost base rather than deducted. A $50 furnace filter is a repair. A $5,000 roof is capital.

How to move it

1. Open the property and go to Financials.
2. Find the expense in the list and tap → Capital.
3. Choose the CCA class. The dropdown opens on Class 8, so it always has something selected. Read the description underneath it before you confirm. It tells you what belongs in the class currently showing, which is the quickest way to catch a wrong pick.
4. Tap Confirm.

Every class is available here

The dropdown offers all ten classes, the same ten you get when you enter a capital improvement directly:

| Class | Rate | What it is usually for | |---|---|---| | Class 1 | 4% | Buildings acquired after 1987 | | Class 8 | 20% | Appliances, furniture, equipment | | Class 3 | 5% | Older buildings, pre-1988 | | Class 6 | 10% | Fences, certain frame or log buildings | | Class 10 | 30% | Vehicles, computer hardware | | Class 12 | 100% | Tools and small assets | | Class 13 | term-based | Leasehold improvements | | Class 14.1 | 5% | Goodwill and intangibles | | Class 43 | 30% | Eligible machinery and equipment | | Class 50 | 55% | Computer equipment and systems software |

Class 13 shows no percentage because leasehold improvements are written off over the lease term rather than at a fixed declining-balance rate.

This dropdown used to offer only six of the ten. Class 3, Class 6, Class 14.1 and Class 43 were available when you entered a capital improvement directly but not when you corrected an expense, so the same asset could end up in a different class depending on which way you entered it. All ten are available both ways now.

What changes after you confirm

• The cost leaves your current-year expense total on the T776 and appears on the capital schedule instead, at the same amount. Nothing is rounded or re-entered.
• The row stays in the property's expense list, badged Capital, because it is still real money that left your bank account. The → Capital button is gone from it.
• You can see it grouped by class on the Tax page under capital assets.

If it was not depreciable at all

Land, land transfer tax and the legal fees that acquired the property add to your cost base but are never depreciated, so they do not belong in a CCA class. Record those through the Tax page instead, using "ACB only, not depreciable" on the capital-asset form, or through Closing costs on the property's Purchase and mortgage panel. See Record land and other non-depreciable capital (ACB only).

Notes

• Moving an expense between current and capital is a tax treatment change, not a change to your cash records, so your bank reconciliation and your property statements still show the money going out when it went out.
• A closed accounting period refuses the change, and if your account requires sign-off on money changes your reclassification waits for an approver.
• The capital schedule and any CCA figures are for you and your accountant to check. Wealthru packages the numbers, it does not file for you.