Fix it and deduct it — but improvements that enhance value are capital, not repairs.
Know exactly what belongs on Line 8960 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to repairs & maintenance.
A 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-128RSee how different professionals use Line 8960 deductions in practice.
Hired a plumber to fix a leaking faucet in a short-term rental property.
$275
$275 (100%)
Had a cracked laptop screen replaced to restore the computer to working condition.
$350
$350 (100%)
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.
These categories are often mixed up with Repairs & Maintenance. Here's the difference.
See how ScanForTax processes a typical repairs expense.
Bob's Plumbing
2025-05-12
Ontario
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.
Profession-specific guides that frequently use Repairs deductions.
See how tax recovery works for repairs expenses in each province.
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