QB Issue Resolution:

Since you are in Canada I suggest you get with a tax accountant

In the US, the major improvements would be their own fixed asset account as a sub account of the vehicle and subject to their own depreciation

That said, whether or not you can take depreciation on a leased vehicle in the US is subject to the type of lease and the legal wording, I would expect some similar kind of “if-this-then-that” to exist in Canada – which is why I say best to check with a tax accountant.

Resolution for Issue 'Capitalizing improvements on leased equipment?' available: Yes (Solved).
Source: Intuit Community forum.

Capitalizing improvements on leased equipment?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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