Work on a property that the taxpayer had purchased from a shareholder with a view to making it suitable for use as its offices, including converting the existing garage into office space, replacing garage doors with windows, converting the former office space into a storage room, putting a second storey containing a bedroom above the former garage, installing a new sloped roof, installing a new staff washroom and replacing the septic system all were expenditures on capital account. Although some of the work eliminated the need to address deficiencies in the existing building, this was not a basis for regarding a portion of the work as a cluster of disparate repairs.
Work done on another property that the taxpayer leased, consisting of upgrading the existing electrical wiring (including resulting required repairs to drywall) and replacing worn carpets, gave rise to fully deductible expenditures.