Tradespeople May Deduct The Cost of Tools

February 3, 2017 9:34 am

Tradesmen - taxes

Here’s the link: http://www.cra-arc.gc.ca/trades/

Deduction for tools (tradespersons)

If you were a tradesperson in 2016, use the following formula to calculate your maximum tradesperson’s tools deduction for the cost of eligible tools you bought in 2016:

Maximum deduction for eligible tools is the lesser of:

a) $500; and

b) the amount, if any, determined by the formula

A − $1,161 where

A = the lesser of:

1. the total cost of eligible tools that you bought in 2016; and

2. your income from employment as a tradesperson for the year

plus the amount you received in 2016 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;

minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2016.

Are you confused or need some help?  Call our office today: 905-549-4418

Leave a Reply

Your email address will not be published. Required fields are marked *