Tradespeople’s tool expenses

If you’re an employed tradesperson, you may be entitled to a tax deduction for the cost of new tools used in carrying out your employment duties.

For 2016, the amount you can claim is equal to the cost of new tools in excess of $1,161 that you’re required to purchase as a condition of your employment, subject to a maximum claim of $500. This measure applies to new tools, other than electronic communication devices and electronic data-processing equipment (such as computers, pagers and cell phones), and is in addition to the Canada Employment Credit (see topic 93). It’s the CRA’s view that any person engaged in an occupation that demands a certain level of skill may be considered a “tradesperson” for purposes of this deduction.

If you’re an apprentice vehicle mechanic, you’ll also be eligible to claim this tax deduction in addition to the existing apprentice vehicle mechanics’ tools deduction (see topic 102).