[Les in Calgary]

I was surprised by the significantly reduced allowable tax deduction for tools purchased by tradesman in 2006. Is this not a problem for most tradespeople? My clients are shocked and wish to blame me. Any suggestions?

[RL Tax Joe]

Les in Calgary, on Apr 15 2007, 12:42 PM, said:

I was surprised by the significantly reduced allowable tax deduction for tools purchased by tradesman in 2006. Is this not a problem for most tradespeople? My clients are shocked and wish to blame me. Any suggestions?

PARDON....REDUCTION?????

This is the first time they are allowed to deduct tools.

[Les in Calgary]

RL Tax Joe, on Apr 15 2007, 10:49 AM, said:

PARDON....REDUCTION?????

This is the first time they are allowed to deduct tools.

In the past, the company gave the employee a signed T2200 showing on line 6 that they were required to purchase tools. This was not allowed?

[RL Tax Joe]

snowplowguy, on Apr 15 2007, 01:27 PM, said:

Not as a direct employment expense.

Tools are not considered supplies. They are generally a class 12 asset. Since employees are not able to deduct capital cost allowance (except in specific instances) they are out of luck.

[Joe]

Looks like a lot of T1-ADJ coming up for "in the past"... :P
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[BrentM]

RL Tax Joe, on Apr 15 2007, 11:49 AM, said:

PARDON....REDUCTION?????

This is the first time they are allowed to deduct tools.

Well other than for apprentices of course! I think for all the limitations that have been worked into this so called tradespersons deduction the conservatives really got a lot of mileage out of it............just like most other budget goodies from all hill residents over the years.

[JohnV]

"the conservatives really got a lot of mileage out of it"


Mmmmm.....maybe just write the rest off as a per km allowance ;)