Musical instrument expenses
If you are an employed musician, your employer may require you to provide your own musical instrument. If this is the case, you can deduct expenses you paid that relate to the musical instrument. Your musical instrument expenses include any GST and provincial sales tax (PST), or HST, you paid on these expenses. You may be able to get a rebate of the GST/HST you paid. For more information, see GST/HST Rebate.
Although you cannot deduct the actual cost of your musical instrument, the amounts you can deduct for your musical instrument are:
- maintenance costs;
- rental fees;
- insurance costs; and
- capital cost allowance (if you own the instrument).
Enter the amount you can deduct on the Musical instrument expenses line (1776) and/or the Capital cost allowance for musical instruments line (1777) of Form T777, Statement of Employment Expenses as appropriate.
However, the amount of musical instrument expenses you can deduct cannot be more than your income for the year from your employment as a musician after deducting all other employment expenses.
How to calculate your expenses
When you use your musical instrument for both employment and other purposes, divide the total instrument expenses among the different uses. For example, if you are using your instrument for employment, self-employment, and personal purposes, separate all three uses. You cannot deduct personal expenses.
Use the self-employment part of your musical instrument expenses to calculate the net self-employment income you report on line 137 of your return. For more information, see Guide T4002, Self-employed, Business, Professional, Commission, Farming, and Fishing Income.
Capital cost allowance
Use the back of Form T777 to calculate the amount of capital cost allowance you can claim for your musical instrument. For more information, see Capital cost allowance.
Change in use
There are special rules for calculating the capital cost of depreciable property. These rules can apply when there is a change in use of the musical instrument from an income-earning purpose to some other purpose, or vice versa. For more information, see Capital cost allowance.
Completing your tax return
Enter the amount you can deduct on the Artists' employment expenses line (9973) of Form T777, Statement of Employment Expenses.
Enter the amount from the Total expenses line (9368) on line 229 of your return.
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