Capital Improvements or write offs

[Chris A.]

Hello everyone. This summer I did a BRRRR in Ontario and I'm wondering what I should do regarding claiming the renovation costs. I purchased the property at the start of July and renovated it until Oct 15th. In this period I spent about $50,000 between the labour and material.

Can I claim this 50k as write offs or do I have to add this as a capital improvement? The main issue is that the 50k renovation increased the home value by 245,000 so that 50k in write offs would save me a lot more money.

Any advice would be greatly appreciated.