Tax Tip: Tradesperson’s tool deduction and eligible tools
TurboTax Canada
December 5, 2019 | 1 Min Read
Updated for tax year 2024
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 mobile phones do not qualify for this deduction.
The CRA allows you to claim a maximum deduction of $1,000. 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 $1,433 from that amount. If the result is less than $1,000, 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.
Related articles
CRA TAX UPDATES
What You Need to Know About the Capital Gains Tax in 2025
Read more
© 1997-2024 Intuit, Inc. All rights reserved. Intuit, QuickBooks, QB, TurboTax, Profile, and Mint are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
Copyright © Intuit Canada ULC, 2024. All rights reserved.
The views expressed on this site are intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.