Employed tradespersons (including apprentice mechanics)

Who are Tradespeople?

Tradespeople may be eligible to claim deductions for the cost of tools purchased for employment purposes. This includes individuals like plumbers, electricians, mechanics, chefs, and even hairdressers. If you are employed in one of these trades, you can also claim the HST paid on these tools. It is crucial to keep all receipts for these purchases.

What Qualifies as an Eligible Tool?

An eligible tool refers to any tool that meets the following criteria:

• The tool was purchased specifically for your work and had no prior use before being bought.
• Your employer must confirm that the tool is necessary for your job.
• Electronic communication devices, such as phones or computers, do not qualify unless they are used solely for measuring, locating, or calculating purposes.

Required Forms

Your employer must complete and sign the T2200 – Declaration of Conditions of Employment form. Along with this form, you will need to submit a list of all the tools you’re claiming and the corresponding receipts.

Who are Apprentice Mechanics?

Apprentice mechanics have similar conditions to tradespeople when it comes to deductions.

As an apprentice, you may also be able to deduct the cost of tools needed for your work. To qualify, you must be enrolled in a recognized apprenticeship program, which is governed by the laws of Canada or your provincial government. This program should lead to a qualification, such as becoming a licensed mechanic to repair vehicles like cars, airplanes, boats, or motorcycles. Keep in mind that you can also claim the HST paid on eligible tools.

What is an Eligible Tool for an Apprentice?

For an apprentice, an eligible tool includes:

• Tools purchased for work purposes that were not used for any other purpose before they were acquired.
• Your employer must certify that the tool is essential for your work.
• Electronic communication devices like phones or computers do not qualify unless they are specifically used for tasks like measurement, location, or calculation.

Required Forms for an Apprentice

As with tradespeople, apprentices must have their employer complete and sign the T2200 – Declaration of Conditions of Employment form. A list of tools being claimed and their corresponding receipts must also be attached.