Business Income

Claiming Expenses for Forestry Operations

Whether you work at a forest camp or a cutting site, you may be able to deduct job-related expenses. If you are required by your employer to purchase and pay for the operation of a power saw or tree trimmer, you can claim a deduction on your tax return. Before you make a claim, ensure your employer signs the T2200 Declaration of Conditions of Employment form to approve your expenses. Do not claim an expense for your power saw if your employer provides you with a reimbursement of any kind.

Deduct Power Saw Expenses

If you work in forestry operations, you may deduct the cost of purchasing and operating a power saw, including a chain saw or tree trimmer. You must meet the following conditions:

  • You are employed in forestry operations.
  • You operate a power saw to earn a living.
  • You are required to pay for the power saw by your employer, and your employer does not reimburse you for the expense.

Deduct the expense of the power saw in the tax year when you purchase it. You must subtract the value of any trade-in amount you receive from selling your power saw during the year from the original purchase price. When claiming power saw expenses, include any goods and services tax, provincial sales tax, or harmonized sales tax that you paid; you may be able to obtain a GST/HST Rebate.

Declaration From Your Employer

When filing your tax return, attach a detailed statement that provides a cost breakdown of operating your power saw. Keep a copy of Form T2200 with your tax records; it must be signed and completed by your employer. You must file the T777 Statement of Employment Expenses form with your tax return to calculate your allowable expenses. Claim the allowable expenses on line 22900 of your return.

What Expenses Cannot Be Deducted

Do not deduct the following expenses:

  • travel costs from home to your regular place of work (i.e. forest camp) since they are considered to be personal expenses. However, you may be able to deduct motor vehicle expenses if you travel from a forest camp to the cutting site operated by your employer.
  • You are not allowed to deduct expenses for other modes of transportation, such as all-terrain vehicles, horses, or snowmobiles; these are considered capital expenses. You are not allowed to claim capital cost allowance or any interest paid to borrow money to purchase these vehicles.

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