Canada Revenue Agency

Canada Revenue Agency

March 13, 2014 10:58 ET

Tax Tip: As a Tradesperson, You Can Save on the Tools You Buy!

OTTAWA, ONTARIO--(Marketwired - March 13, 2014) -

Did you know?

If you are an employed tradesperson, you may be able to deduct up to $500 of the cost of eligible tools you bought in 2013.

You may also be able to get a rebate of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) you paid. For more information, see Employee GST/HST rebate.

Important facts

An eligible tool is a tool (including associated equipment such as a toolbox) that:

  • you bought to use in your job as a tradesperson and was not used for any purpose before you bought it;

  • your employer certified it as being necessary for you to provide as a condition of, and for use in, your job as a tradesperson; and

  • is not an electronic communication device (like a cell phone) or electronic data processing equipment (unless the device or equipment can be used for the purpose of measuring, locating, or calculating).

For more details on how to calculate the deduction for tools, go to www.cra.gc.ca/trades.

If you are an eligible apprentice mechanic, you may be able to deduct a part of the cost of eligible tools you bought in 2013 to earn employment income as an eligible mechanic on top of any amounts already claimed under the tradesperson's deduction for tools. To be eligible, you must be registered in a program established under the laws of Canada or of a province or territory that leads to a designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles and you have to be employed as an apprentice mechanic. To see if you qualify, go to the Employed apprentice mechanics webpage.

CRA online services make filing easier and let you get your refund faster

The CRA's online services are fast, easy, and secure. You can use them to file your income tax and benefit return, make a payment, track your refund, and more. Sign up for direct deposit too! Your refund and any benefit or credit payments owed to you will be deposited directly into your account, putting your money in your pocket faster. For more information, go to www.cra.gc.ca/getready.

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Contact Information

  • Noel Carisse
    Media Relations
    Canada Revenue Agency
    613-952-9184