Employee Tools Deduction Calculator

TaxTips.ca Calculators -> Employee tools deductions calculator information  Internet Explorer? Use compatibility view for calculators to work properly!

Employed Tradespersons Deduction for Tools
Type amounts into yellow cells. Tab or use your mouse to click on the next cell.
Amounts are recalculated automatically when you tab out of a cell or click elsewhere with your mouse, or click the Calculate button.
Tax year††
Total cost of eligible tools that you purchased in the year††
Your income from employment as a tradesperson for the year††
Apprenticeship Incentive Grant and Apprenticeship Completion Grant Programs:
Grant amounts received in the year††
Grant overpayments repaid in the year††
Total income from employment as a tradesperson in the year
plus grant amounts received in the year††
less grant amounts repaid in the year††
Net amount (zero if negative)††
A = Lesser of net amount and total cost of eligible tools††
less base amount††
Amount to compare to maximum of $500††
Maximum deduction is the lesser of††
and amount from above††
Amount of your deduction††
This deduction amount can be entered in "Other deductions" in our Tax Calculators.
Enter your deduction amount on the "Tradesperson's tools expenses" line of Form T777, Statement of Employment Expenses.The total expenses from Form T777 are entered on line 22900 (line 229 prior to 2019) of your tax return.
Your employer has to complete and sign From T2200, Declaration of Conditions of Employment.
Attach to Form T2200 a list of the tools you are claiming, as well as the related receipts.
Form T2200 with the receipts attached does not have to be submitted with your tax return, but must be kept in case Canada Revenue Agency asks to see them.
Eligible Apprentice Mechanic Deduction for Tools
Type amounts into yellow cells. Tab or use your mouse to click on the next cell.
Amounts are recalculated automatically when you tab out of a cell or click elsewhere with your mouse, or click the Calculate button.
The tradesperson tools deduction must be calculated first - the results are used below.
Tax year††
Total cost of eligible tools that you purchased in the year (A)††
If you became employed as an apprentice mechanic for the first time during the year, include the cost of eligible tools purchased during the last 3 months of the preceding year.
Your income from employment as an apprentice mechanic for the year††
Your net income for the year from line 23600 (line 236 prior to 2019) of the tax return,
before the apprentice mechanic deduction
Apprenticeship Incentive Grant and Apprenticeship Completion Grant Programs:
Grant amounts received in the year††
Grant overpayments repaid in the year††
Apprentice mechanic tool deduction carried forward from the prior year (C)††
Canada employment amount claimed on line 31260 (line 363 prior to 2019)
Amount of the tradesperson tool deduction claimed for the year††
The maximum deduction = (A-B) + C
B = lesser of A and the greater of:
(1) $500 + Canada employment amount claimed††
and(2) 5% of:
employment income as eligible apprentice mechanic
plus grant amounts received in the year††
less grant amounts repaid in the year††
less tradesperson tools deduction claimed
Net amount (zero if negative)††
5% of net amount (2)
Greater amount of (1) and (2)
B= Lesser of A and the above amount††
Maximum deduction =††
A††
Less B††
Plus C††
Total A- B + C
Net income for the year before the apprentice mechanic deduction
Maximum amount of your deduction†† - enter your claim on form T777
Apprentice Mechanic tools expenses available to use in future years
Enter your deduction amount on the "Apprentice mechanic tools expenses" line of Form T777, Statement of Employment Expenses.The total expenses from Form T777 are entered on line 22900 (line 229 prior to 2019) of your tax return.
Your employer has to complete and sign From T2200, Declaration of Conditions of Employment.
Attach to Form T2200 a list of the tools you are claiming, as well as the related receipts.
Form T2200 with the receipts attached does not have to be submitted with your tax return, but must be kept in case Canada Revenue Agency asks to see them.
Adjusted Cost of Tools Purchased in the Year
Tax year††
Total cost of eligible tools that you purchased in the year (A)††
Tradesperson tools deduction††
Apprentice mechanic tools deduction††
Total tools deduction (E)††
Cost of individual tool (D)†† 100
Adjusted cost of individual tool costing $100 = 100 - (100 x [E / A]) =
For any tool purchased this year, to determine the adjusted cost of the individual tool, multiply the original cost by††
Income from Tools Sold During the Year
Type amounts into yellow cells. Tab or use your mouse to click on the next cell.
Amounts are recalculated automatically when you tab out of a cell or click elsewhere with your mouse, or click the Calculate button.
Tool 1 Tool 2 Tool 3
Year in which the tool was purchased (not used in calculation)††
If all the tools sold were purchased in the same year, just use one column for the calculation.
Total cost of eligible tools that you purchased in the year (A)††
If you had claims for both the tradesperson's and apprentice mechanic's tools deductions, use the value of A that was greater.
Tradesperson tools deduction††
Apprentice mechanic tools deduction††
Total tools deduction (E)††
Original cost of sold tools, included in A above (D)††
Adjusted cost of tools = D - (D x [E / A]) =
Proceeds received for each tool
Gain/(loss) on disposition
Total gain to include in income on line 130 of your tax return
The gain can be included in the "other income" line in the Tax Calculators.Losses cannot be claimed.

See our articles on Tools Deductions for Employees.

Questions or comments on the Employee Tools Deduction Calculator? 

Revised: March 25, 2021

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Monthly Newsletter Sign-up  Whatís New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.