Tools Deduction for Employed Tradespersons

Tax Topics
1

The Employment deduction for tradespersons’ eligible tools is $1,000 for 2023.

Taxpayer is a tradesman - journeyman (not an apprentice).
Does that mean he’s not eligible to deduct tools?

Screenshot 2024-03-25 171539
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His tools cost less than $1000.00 and for 2023, the “base amount” used in calculation of tool deduction is $1,368. No deduction is available unless the cost of tools exceeds this amount.

So he will not be able to claim anything for his tools but I would like to still know if being a Journeyman makes him ineligible.

2

Google knows all (actually, DuckDuckGo, in this case):

2 Likes
3

I came across this link with a google search:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/employed-tradespersons-including-apprentice-mechanics/deduction-tools-tradespersons.html

My question is, can you still claim tools if you are a non-apprentice tradesman?

4

This may help…

1 Like
5

Doesn’t matter if he is a journeyman or anything. If he is active in a “trade” of some kind, he can use the tools deduction, limited to the rules - if his total purchases are less than $1,368 he gets no tax benefit. He can’t use the special rules for apprentice mechanics unless he is ACTUALLY an apprentice mechanic (should be registered with the provincial apprenticeship board).

1 Like
6

Thank you for your helpful replies!

7

I have a follow up question on this.

Base amount used to calculate tool deduction in 2023 is $1368. If tool cost amount in 2023 was below the base amount can that unused cost be carry forward to the next tax year?

ITA 8(1)(s) states in the taxation year

ITA 8(S)
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I have not found anything suggesting that costs below the base amount in one year can be carryforward to the next year.

Do others see it differently?