Deductions on Tools of the Trade
If you are an employed tradesperson or apprentice mechanic please read on.
Employed tradespersons may be eligible to deduct the cost of qualifying tools you bought in 2008 to earn employment income. This cost can include GST, HST and provincial sales tax you paid.
An eligible tool is:
§ Toolbox
§ An item you specifically bought for a job and was not used for any other purpose before
§ If your employer says it is necessary for you to provide and use this item
§ Any device used for measuring, locating and calculating
An electronic device such as a cell phone is not eligible.
Your employer must complete and sign form T2200, Declaration of Conditions of Employment, in order to qualify.
If you are an apprentice mechanic you may also be able to deduct the cost of qualifying tools you bought in 2008 to earn employment income. This cost can also include GST, HST and provincial sales tax you paid.
Please note that you must be an eligible apprentice mechanic, if you are not you cannot claim expenses for tools. This is determined by:
§ You are employed as an apprentice mechanic
§ If you are enrolled in a program that leads to being a licensed mechanic to repair self-propelled motorized vehicles. The program must be recognized under the laws of Canada or of a province or territory.
As it is impossible to include all situations, circumstances and exceptions, contact Dustin for a further review or for further explanation. Every effort has been made to ensure the accuracy of the information. However, because of the nature of the subject, no person or firm involved in the preparation or distribution of this commentary accepts any liability for its contents or use.