If you're a tradesperson, you know how expensive tools can be. Fortunately, there are tax measures to help. As a tradesperson, you may be able to claim a deduction of up to a maximum of $500 for the cost of eligible tools you bought in 2011 to earn employment income.
This cost includes any goods and services tax/harmonized sales tax and provincial sales tax you paid. An eligible tool is one that:
• you bought to use in your job as a tradesperson and was not used for any purpose before you bought it;
• your employer certified as being necessary for you to provide as a condition of, and for use in, your job as a tradesperson; and
• is not an electronic communication device (like a cellphone) or electronic data processing equipment, unless the device or equipment can be used only for the purpose of measuring, locating, or calculating.
More information about eligibility, how to calculate your deduction for tools, and for forms and publications for tradespersons, can be found online at www.cra.gc.ca/trades.
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