A client is planning to attend a property investment training course given by a real estate investment company (Keyspire). Keyspire has informed him that the fees, in the neighbouhood of $20,000. are tax deductible. I don’t see a way to claim that kind of cost in the T1. Any advice will be appreciated.
If your client is a commission employee, you can consider the training cost as an employment expense.
However, your client would need a T2200 form filled up by their employer where it states that they’re allowed to claim that expense. There is also another caveat, the client cannot deduct the cost of a training course as an employment expense if the course is for personal reasons, the cost is unreasonable, or you receive a lasting benefit from the course (i.e., something that benefits their post secondary degree/diplomas). Seeing that the price tag for the course is $20k, the CRA will most likely audit the client, where there is a higher possibility for the claim to be denied by them. It sounds like the training course should be a tuition slip, maybe they should ask from the program issuer to provide them a slip.
Also make sure the T2202 slip is the updated version of the slip, I’m talking about the changes that were done after 2019. I’ve noticed that some fake “institutions” use the outdated version, in that way, they don’t have to submit a copy to the CRA.
The problem in asking a question like this - and expecting an answer from tax professionals - is the complete and utter lack of background to the query being posed.
“The devil is in the details.”
Is the client self-employed? Incorporated? In the business of property management and investment? Does the company (assuming there is one) have a track record? Is it new? Has it previously bought and sold properties? Does it or has it rented property previously? Is it a developer or considering being same?
Just a few of the questions that need to be answered before ANYBODY could provide any form of meaningful analysis.
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Exactly as smallbizguy stated.
Too many unknowns.
Rachel Parlee
(506) 874-3093
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Is the educational institution listed as one of the institutions which are permitted to issue a T2202?
https://www.cicic.ca/868/search_the_directory_of_educational_institutions_in_canada.canada
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The educational institution is not listed as being permitted to issue a T2022. The client would use the knowledge to build a personal real estate portfolio. The purpose - rental income and capital gains.
Likely non-deductible then. No business to claim against and no alternative possibility. Some costs are just after-tax ones.
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