Families

Tax Tip: Claiming the costs of musical instruments

If you are a musician, you are able to deduct tools maintenance costs, tools rental fees, insurance costs and capital cost allowance on the musical instruments you own including any GST/HST paid on them. You can deduct a portion of the expenses that is related to your job as a musician if you use the tools for other purposes.

You can also deduct the capital cost allowance class 8 for your instrument. Here, you deduct a percentage of the instrument cost (depreciation value) for each year up to the maximum amount that you paid. For all deductible costs, you cannot claim over or above the income that you are claiming.

The T2200, Declaration of Conditions of Employment is not required for musicians to claim instrument expenses. However, it is required if they will claim other employment expenses such as meals and travel. Do not submit T2200 with your tax return and save it for your record in case CRA request it.

In order to claim the cost, enter on line 1176 Musical Instrument Expense on form T777 Statement of Employment Expenses. and claim the CCA on line 1777. Claim the employment expenses results from the T777 form on line 22900 of your income tax and benefit return. If you work as a self-employed musician, claim the income on line 13700 of your tax return.

TurboTax products offer an easy step-by-step guide to help you report the T2200 forms and fill out all related T777 forms to get the maximum deductions you are eligible for. Consider TurboTax Live Assist & Review if you need further guidance, and get unlimited help and advice as you do your taxes, plus a final review before you file. Or, choose TurboTax Live Full Service* and have one of our tax experts do your return from start to finish.

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