This post has to do with Shareholder-Employees deducting work related expenses on their T1 Personal Income Tax Return
When can shareholder-employees deduct expenses?
Until now, there has been some confusion over tax claims for auto and other work-related costs of shareholder employees, as our Tax Blog highlighted. CPA Canada raised the issue with the Canada Revenue Agency (CRA), and the CRA developed draft guidance with our input to clarify how these rules apply.
The CRA’s guidance is now finalized. In a stakeholder email that the CRA asked us to share with our members, the CRA explains how shareholder-employees who meet two key conditions may be allowed to deduct employment expenses.
Click on this link to obtain the CRA finalized download