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Employee Tools Deductions Calculator

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TaxTips.ca Calculators -> Employee tools deductions calculator information  Internet Explorer? Use compatibility view for calculators to work properly!

Employed Tradespersons Deduction for Tools
Type amounts into yellow cells. Tab or use your mouse to click on the next cell.
Amounts are recalculated automatically when you tab out of a cell or click elsewhere with your mouse, or click the Calculate button.
Tax year  
Total cost of eligible tools that you purchased in the year  
Your income from employment as a tradesperson for the year  
Apprenticeship Incentive Grant and Apprenticeship Completion Grant Programs:
Grant amounts received in the year  
 Grant overpayments repaid in the year  
Total income from employment as a tradesperson in the year
plus grant amounts received in the year  
less grant amounts repaid in the year  
Net amount (zero if negative)  
A = Lesser of net amount and total cost of eligible tools  
less base amount  
Amount to compare to maximum of $500  
Maximum deduction is the lesser of  
and amount from above  
Amount of your deduction  
This deduction amount can be entered in "Other deductions" in our Tax Calculators.
Enter your deduction amount on the "Tradesperson's tools expenses" line of Form T777, Statement of Employment Expenses.  The total expenses from Form T777 are entered on line 229 of your tax return.
Your employer has to complete and sign From T2200, Declaration of Conditions of Employment.
Attach to Form T2200 a list of the tools you are claiming, as well as the related receipts.
Form T2200 with the receipts attached does not have to be submitted with your tax return, but must be kept in case Canada Revenue Agency asks to see them.
Eligible Apprentice Mechanic Deduction for Tools
Type amounts into yellow cells. Tab or use your mouse to click on the next cell.
Amounts are recalculated automatically when you tab out of a cell or click elsewhere with your mouse, or click the Calculate button.
The tradesperson tools deduction must be calculated first - the results are used below.
Tax year  
Total cost of eligible tools that you purchased in the year (A)  
If you became employed as an apprentice mechanic for the first time during the year, include the cost of eligible tools purchased during the last 3 months of the preceding year.
Your income from employment as an apprentice mechanic for the year  
Apprenticeship Incentive Grant and Apprenticeship Completion Grant Programs:
Grant amounts received in the year  
 Grant overpayments repaid in the year  
Apprentice mechanic tool deduction carried forward from the prior year (C)  
Canada employment amount claimed on line 363 of Schedule 1  
Amount of the tradesperson tool deduction claimed for the year  
The maximum deduction = (A-B) + C
B = lesser of A and the greater of:
(1) $500 + Canada employment amount claimed  
and  (2) 5% of:
employment income as eligible apprentice mechanic
plus grant amounts received in the year  
less grant amounts repaid in the year  
less tradesperson tools deduction claimed
Net amount (zero if negative)  
5% of net amount (2)
Greater amount of (1) and (2)
B= Lesser of A and the above amount  
Maximum deduction =  
A  
Less B  
Plus C  
Maximum amount of your deduction  
Enter your deduction amount on the "Apprentice mechanic tools expenses" line of Form T777, Statement of Employment Expenses.  The total expenses from Form T777 are entered on line 229 of your tax return.
Your employer has to complete and sign From T2200, Declaration of Conditions of Employment.
Attach to Form T2200 a list of the tools you are claiming, as well as the related receipts.
Form T2200 with the receipts attached does not have to be submitted with your tax return, but must be kept in case Canada Revenue Agency asks to see them.
Adjusted Cost of Tools Purchased in the Year
Tax year  
Total cost of eligible tools that you purchased in the year (A)  
Tradesperson tools deduction  
Apprentice mechanic tools deduction  
Total tools deduction (E)  
Cost of individual tool (D)   100.00
Adjusted cost of individual tool costing $100 = 100 - (100 x [E / A]) = 
For any tool purchased this year, to determine the adjusted cost of the individual tool, multiply the original cost by  
Income from Tools Sold During the Year
Type amounts into yellow cells. Tab or use your mouse to click on the next cell.
Amounts are recalculated automatically when you tab out of a cell or click elsewhere with your mouse, or click the Calculate button.
Tool 1 Tool 2 Tool 3
Year in which the tool was purchased (not used in calculation)  
If all the tools sold were purchased in the same year, just use one column for the calculation.
Total cost of eligible tools that you purchased in the year (A)  
If you had claims for both the tradesperson's and apprentice mechanic's tools deductions, use the value of A that was greater.
Tradesperson tools deduction  
Apprentice mechanic tools deduction  
Total tools deduction (E)  
Original cost of sold tools, included in A above (D)  
Adjusted cost of tools = D - (D x [E / A]) = 
Proceeds received for each tool
Gain/(loss) on disposition
Total gain to include in income on line 130 of your tax return
The gain can be included in the "other income" line in the Tax Calculators.  Losses cannot be claimed.

 

Questions or comments on the Employee Tools Deduction Calculator?     

 

Revised: September 19, 2017

 

 

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