Tools Deductions for Employees
Income Tax Act s. 8(1)(s), 8(1)(r)
A deduction may be available for tools purchased in order to
earn employment income as a tradesperson.
If you are an eligible apprentice mechanic, you must first
calculate the tradesperson's tools deduction, if any, for which you
qualify. Then, calculate the employed apprentice mechanic's tools deduction
to determine if this claim can also be made.
When tools for which a deduction was previously claimed are disposed of, any gain from the
disposal must be included in income on line 130 of the tax return.
Let our calculator do the work for you.
Line 229 employment expenses can be entered in the
"other deductions" line of the Canadian
Tax and RRSP Savings Calculator.
GST/HST Included in Tool Costs
The tool costs will include any GST/HST or
provincial sales taxes incurred. You may be eligible for a refund of the
GST/HST included in the costs. See Employee
and Partner GST/HST rebate on the GST/HST page.