Tax Savings for Tradespersons

Did you know?

If you were an employed trades person in 2012 (including an eligible apprentice mechanic), you may be able to deduct up to $500 of the cost of eligible tools bought to earn your employment income.

Important factsiStock_000003483073Medium

  • An eligible tool is a tool (including associated equipment such as a toolbox) that:
    • you bought to use in your job as a trades person and was not used for any purpose before you bought it;
    • your employer certified as being necessary for you to provide as a condition of, and for use in, your job as a trades person; and
    • is not an electronic communication device (like a cell phone) or electronic data processing equipment (unless the device or equipment can be used only for the purpose of measuring, locating, or calculating).

 

If you are an eligible apprentice mechanic, you may be able to claim an additional tools deduction. To be eligible, you must be registered in a program that leads to a designation as a mechanic licensed to repair self-propelled motorized vehicles, and you have to be employed as an apprentice mechanic.

For more details on how to calculate the deduction for tools, go to www.cra.gc.ca/trades.

Leave a Reply

Your email address will not be published.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