Repairs & Maintenance on Your T2125
Fix it and deduct it — but improvements that enhance value are capital, not repairs.
What You Can (and Can't) Deduct
Know exactly what belongs on Line 8960 — and what the CRA says doesn't qualify.
What Qualifies
- Labour and materials for minor repairs to business property or equipment
- Equipment servicing, tune-ups, and preventive maintenance
- Minor building repairs (plumbing fixes, paint touch-ups, window repairs)
Does NOT Qualify
- Capital improvements that enhance the property beyond its original condition (claim via CCA)
- Your own labour (only third-party labour is deductible)
- Vehicle repairs and maintenance (claim on Line 9281 under Motor Vehicle Expenses)
Rules & Limits
Special CRA rules and percentage limits that apply to repairs & maintenance.
Special Rules
Repair vs. Capital Improvement
Heads upA repair restores an asset to its original condition and is fully deductible as a current expense. An improvement enhances the asset beyond its original condition (e.g., adding a new room, upgrading a system) and must be capitalized through CCA.
Interpretation Bulletin IT-128RReal-World Examples
See how different professionals use Line 8960 deductions in practice.
Plumber to Fix Leaking Faucet
Hired a plumber to fix a leaking faucet in a short-term rental property.
$275
$275 (100%)
Laptop Screen Replacement
Had a cracked laptop screen replaced to restore the computer to working condition.
$350
$350 (100%)
Common Mistakes to Avoid
These errors on Line 8960 can trigger a CRA review — here's how to get it right.
Claiming capital improvements as repairs
A new roof, an addition, or a major renovation that enhances the property is a capital improvement, not a repair. Capital improvements must be added to CCA and depreciated over time.
Not distinguishing vehicle repairs (which go on Line 9281)
Vehicle repairs and maintenance belong under Motor Vehicle Expenses (Line 9281), not here. Line 8960 is for non-vehicle business property and equipment repairs.
Commonly Confused Categories
These categories are often mixed up with Repairs & Maintenance. Here's the difference.
Sample Receipt Walkthrough
See how ScanForTax processes a typical repairs expense.
Bob's Plumbing
2025-05-12
Ontario
How ScanForTax categorizes this
ScanForTax identifies this plumbing invoice and auto-categorizes it under Repairs & Maintenance (Line 8960). The $32.50 HST is flagged as fully recoverable through your ITC claim.
Frequently Asked Questions
How do I know if something is a repair or a capital improvement?
Can I claim my own labour as a repair expense?
Related Professions
Profession-specific guides that frequently use Repairs deductions.
Tax Guides by Province
See how tax recovery works for repairs expenses in each province.
Related Expense Categories
Tax deadline is April 30th.
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