Direct answer

Clinic renovation costs should be organized by scope and asset type for review by the practice’s accountant. The CRA generally treats enduring improvements as capital expenses rather than immediate operating expenses, and a leasehold interest may fall within CCA Class 13. The correct treatment depends on the facts, lease terms, ownership, timing and current tax rules, so the construction team should provide clear records—not make the tax determination.

01

Discuss structure before invoices accumulate

The accountant should understand whether the practice owns or leases the property, which entity signs the construction and equipment contracts, what the landlord contributes and when assets are expected to become available for use.

These facts can affect the records the accountant needs and the way costs are classified.

02

Project records worth separating

A clean cost record makes professional review more efficient.

  • Landlord work, tenant work and tenant allowances
  • Design and professional consultant fees
  • Permanent leasehold improvements
  • Furniture, fixtures and cabinetry
  • Dental and medical equipment
  • Computers, data, phones and security
  • Repairs or maintenance distinguished from improvements
  • Change orders, credits, taxes and proof of payment
  • Delivery, installation and commissioning dates

03

What Build In York can and cannot do

For our design-build projects, we can organize contracts, approved changes, invoices and construction information generated through the work, and coordinate questions with the owner’s authorized accountant.

Build In York does not determine deductibility, CCA class, ownership, corporate structure or tax consequences. Those decisions belong to the owner’s accountant or tax advisor using the current law and the project’s facts.

Questions

Frequently asked questions

Are all clinic renovation costs immediately deductible?

Not necessarily. The CRA distinguishes current expenses from capital expenses, and many enduring improvements are capital in nature.

Are leasehold improvements always Class 13?

CRA guidance includes leasehold interests in Class 13, but the correct classification and calculation depend on the facts and lease. Ask your accountant.

Why involve the accountant before opening?

Early coordination can clarify entity names, invoice detail, asset groupings, landlord contributions and the information that should be retained.

Sources

Primary references

Municipal rules and project conditions change. Confirm current requirements for the specific property and scope.