TaxTips.ca - Employee Tools Deductions Calculator

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 during 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


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 22900 (line 229 prior to 2019) 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

Your net income for the year from line 23600 (line 236 prior to 2019) of the tax return,
before the apprentice mechanic deduction
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 31260 (line 363 prior to 2019)

Amount of the tradesperson tool deduction claimed for the year

The maximum deduction = (A-B) + C
B = lesser of A and the greater of:

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
Total A - B + C
Net income for the year before the apprentice mechanic deduction
Maximum amount of your deduction - enter your claim on form T777
Apprentice Mechanic tools expenses available to use in future years
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 22900 (line 229 prior to 2019) 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

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.

Employee Tools Deduction Calculator

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