New CRA video clarifies tax deal for automotive apprentices

Canada Revenue Agency has modified its online documents clarifying the rules regarding tool tax rebates for apprentice automotive technicians, and included a new video to clarify the Tradesperson’s Tool Deduction.

Eligible tools for apprentices (including associated equipment such as a toolboxes) include those 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 cell phone) or electronic data processing equipment (unless the device or equipment can be used only for the purpose of measuring, locating, or calculating).

Your employer will have to complete and sign a Form T2200, Declaration of Conditions of Employment, including questions 11 of Part B of the form that certify the tools being claimed were bought and provided by you as a condition of your employment.

You’ll want to keep a list the tools you are claiming, along with the related receipts. They don’t need to be attached to your return, but should be kept for reference.

Among the RCA online documents that have recently been updated:

Deduction for tools (tradespersons)

If you were a tradesperson in 2015, use the following formula to calculate your maximum tradesperson’s tools deduction for the cost of eligible tools you bought in 2015.

Employed tradespersons (including apprentice mechanics)

You may be able to deduct the cost of eligible tools you bought in 2015 to earn employment income as a tradesperson and as an eligible apprentice mechanic. This cost includes any GST and provincial sales tax (PST), or HST you paid.

Disposition of tools (tradespersons)

Video on tool purchases for tradespersons