Section 41: Repairs and improvements.

(1) A deduction is allowed in respect of—a) expenses incurred to repair, renew, alter or improve depreciable assets; and b) expenses incurred to repair non-depreciable assets used in the production of assessable income. (2) The deduction under paragraph (a) of subsection (1) for each year of assessment is limited to five percent of the balance of the pool, as determined under section 39, at the end of the preceding year of assessment. (3) The excess, if any, of the amount described in paragraph (a) of subsection (1) over the limit in subsection (2) is treated as the cost of an asset added to the pool during the year of as assessment.