Deduction for tools for an eligible apprentice mechanic
Even though you may have already claimed the tradesperson's deduction for tools, you may also be able to deduct a part of the cost of eligible tools you bought in 2023 to earn employment income as an eligible apprentice mechanic.
Use the following formula to calculate your maximum deduction for the cost of eligible tools you bought in 2023 if you were an eligible apprentice mechanic at any time in 2023:
Maximum deduction for eligible toolsFootnote 1 = (A − B) + C
where
A = the total cost of eligible tools that you bought in 2023Footnote 2
B = the lesser of:
1. the total cost of eligible tools that you bought in 2023 as calculated in A
2. the greater of:
- $1,000 + the Canada employment amount claimed on line 31260 of your income tax and benefit return (maximum $1,368)
- 5% of:
- your employment income as an eligible apprentice mechanic
- plus the amount you received in 2023 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs
- minus any claim you made for the tradesperson's deduction for tools, and the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2023
C = the amount, if any, of the maximum deduction for eligible tools that you calculated for 2022 that you did not claim in 2022 (your carry forward amount from 2022, if any)
Note
If you do not want to claim the maximum deduction, you can carry forward the unused amount for use against income earned in a future year. You can deduct the unused amount against any type of income in a future year even if you are no longer employed as an eligible apprentice mechanic at that time.
Example
The Motor Company hired Bill as a second-year eligible apprentice mechanic on November 1, 2022. Based on the tools he bought during 2022, Bill calculated his maximum deduction for eligible tools in 2022 to be $3,500. He only claimed $1,500 of this amount on his 2022 income tax and benefit return. In 2023, Bill received $18,000 in income from his job as an eligible apprentice mechanic. In 2023, he received $1,000 under the Apprenticeship Incentive Grant program, and he also received income of $4,000 from other sources.
During September of 2023, Bill bought two eligible tools for $4,500. He already calculated and claimed a tradesperson’s tools deduction of $1,000 for 2023. He had also claimed a Canada employment amount of $1,368.
Bill calculated his maximum deduction for eligible tools in 2023 as follows:
Maximum deduction for eligible tools = (A − B) + C
where
A = $4,500
B = the lesser of:
1. $4,500
2. the greater of:
- $2,368 ($1,000 + $1,368)
- $900 [5% of ($18,000 + $1,000 – $1.000)]
C = $2,000
Therefore, Bill’s maximum deduction in 2023 is $4,132 ([$4,500 – $2,368] + $2,000) since it is less than his net income of $22,000 ([$18,000 + $1,000 – $1,000] + $4,000). Bill claims his deduction of $4,132 on line 22900 of his income tax and benefit return.
Completing your tax return
Enter your claim on the Apprentice mechanic tools expenses line (9131) of Form T777, Statement of Employment Expenses.
Forms and publications
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