The CRA allows tradespeople to deduct a portion of the cost of tools and associated equipment purchased for work; for example, a toolbox. To qualify for this deduction, your employer must certify (using form T2200) that you needed the tools for employment, and you must not have used the tools for any other purpose. Electronic communication devices such as cell phones do not qualify for this deduction.
The CRA allows you to claim a maximum deduction of $500. However, in some cases, your allowable deduction may be lower.
To calculate your deduction, start with the lesser of the amount you spent on allowable trade tools or the income you earned as a tradesperson. Subtract $1,195 from that amount. If the result is less than $500, that is the amount you may deduct.
Report that amount on line 229 of your return. Add it to any of your other allowable employment expenses.