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Is landscaping or fixing a driveway at my rental property a current or capital expense?

TSL Written by the Treadstone Law team· Updated August 2026

It depends on the scope of what you did, using the same repair-versus-improvement lens CRA applies elsewhere. Routine landscaping upkeep - mowing, trimming, patching a section of driveway, or filling cracks - generally counts as a current expense, since it maintains the property in the condition it was already in rather than making it better than before.

Larger work is more likely to be capital: repaving an entire driveway, regrading the yard, or adding new landscaping features like retaining walls or a new paved area that didn't exist before provides a lasting benefit and goes beyond simple upkeep. A full driveway replacement, in particular, tends to be treated like other whole-asset replacements - even if the old one was cracked and needed it, replacing it outright is usually capital rather than a repair. As with other rental expenses, the safest approach is to keep clear records distinguishing routine, recurring maintenance from one-off larger projects, since CRA looks at both the nature of the specific work and whether it was part of something bigger when deciding which category it falls into.

Key takeaways

  • Routine landscaping upkeep and driveway patching are generally current expenses.
  • Full driveway repaving or major landscaping additions tend to be capital.
  • The distinction follows the same repair-versus-improvement logic used for other rental property work.
  • Keeping routine maintenance separate from larger projects in your records helps support the right treatment.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone tax lawyer can help.
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