# Deduction for tools (tradespersons)

If you were a tradesperson in 2017, use the following formula to calculate your maximum tradesperson's tools deduction for the cost of eligible tools you bought in 2017:

Maximum deduction for eligible tools is the lesser of:

a) \$500; and

b) the amount, if any, determined by the formula

A − \$1,178 where

A = the lesser of:

1. the total cost of eligible tools that you bought in 2017; and

2. your income from employment as a tradesperson for the year

plus the amount you received in 2017 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;

minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2017.

## Example

In 2017, Karsten is employed as an electrician with ABC Company, and he needs to purchase additional tools for his job. He paid \$2,500 for the tools he needed and he earned \$45,000 in employment income in 2017 as an electrician.

He calculates his maximum deduction for eligible tools in 2017 as follows:

Maximum deduction for eligible tools is the lesser of:

a) \$500; and

b) the amount, if any, determined by the formula

A − \$1,178 where

A = the lesser of:

1. \$2,500; and

2. \$45,000

Karsten's maximum deduction for 2017 is the lesser of \$500 and \$1,322 (\$2,500 − \$1,178). Karsten claims a deduction of \$500 at line 229 of his 2017 income tax and benefit return.

## Completing your tax return

Enter your claim on the Tradesperson's tools expenses line (1770) of Form T777, Statement of Employment Expenses.

## Forms and publications

Please select all that apply: