Current expense
Current or operating expenses are recurring expenses that provide a short-term benefit. For example, the cost of repairs you make to keep an asset in the same condition as it was when you acquired it. You can deduct current expenses from your gross income in the year you incur them.


Capital expense
Capital expenditures provide a benefit that usually lasts for several years. For example, costs to buy or improve your property are capital expenses. Generally, you cannot deduct the full amount of these expenses in the year you incur them. Instead, you can deduct their cost over a period of several years as capital cost allowance.

These expenses can include:

the purchase price of rental property
legal fees and other costs connected with buying the property
the cost of furniture and equipment you are renting with the property。