Are condo special assessment fees on a rental unit a current expense or a capital expense?

It depends entirely on what the special assessment actually pays for, since a condo special assessment takes on the character of the underlying work it funds rather than having a fixed treatment of its own. If the assessment is funding ordinary repairs or topping up the reserve fund for routine maintenance, such as repainting common areas, fixing existing systems, or general upkeep, it's generally treated as a current expense, the same as any other rental operating cost.

If instead the assessment is funding a major structural improvement or a significant upgrade to the building, such as a full building envelope replacement, a major elevator overhaul, or a substantial capital project that goes beyond simple maintenance, it's more likely to be treated as a capital expense, meaning your share gets added to the property's capital cost and depreciated through CCA rather than deducted immediately. Condo corporations don't always clearly label what a specific assessment is for in a way that maps neatly onto tax categories, so getting a clear breakdown from the condo corporation or property manager about what the assessment actually funds is important to correctly categorizing it, rather than assuming all special assessments are treated the same way.