What are “Capital Repairs”? A repair is considered to be a capital repair when it is undertaken to improve or extend the normal economic life of an existing structure. No deductions are available for a capital repair; it will instead be added to the cost of the property. A Capital Repair is really a subset of “Capital Improvements,” which are part of the larger category of “Capital Expenses.”

What is a “Capital Improvement”? Capital Improvements include Capital Repairs, but also the addition of a permanent structural improvement or the restoration of some aspect of a property that will either enhance the property’s overall value. Again, the cost of a Capital Improvement cannot be deducted from income. It must be added to the cost of the property.

IN ANY EVENT, THEY ARE BOTH CAPITAL EXPENDITURES.href=’http://www.retailrealestatelaw.com/archives/352′>CAM and Capital Expenses — Retail Real Estate Law Ruminations

Thus, the installation at Spadina Towers of the new hot water heating system and related components, was clearly a capital expenditure. The proposition of a replacement of the entire parkade surface structure, would of course also be a capital expenditure. A special resolution of unit owners would certainly be required to approve of such a project.