Tradespeople May Deduct The Cost of Tools

February 3, 2017 9:34 am

Tradesmen - taxes

Here’s the link:

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.

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