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?

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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!