Saving Money on Your Taxes as a Trades Person
As a trades person you may not be aware that you may be able to claim some of the tools that you bought to perform your work. Even though you are an employee as a tradesperson it could be that you were required to buy a few of your own tools.
You want to get every tax buck back that you can and the best way of doing this is really understanding how your taxes should be done properly. Even better, is to use a quality Toronto tax accountant that is going to take the time to know what deductions your particular trade is eligible for.
It may be that for your current tax requirement for 2013 you can claim a deduction of up to $500 for some types of tools that you bought during that year. Also, in this you may be able to include anything that is related to those tools like a tool box, for example.
Naturally there are rules for this potential deduction just like any other deduction. One rule is you must have purchased the particular tool for its sole purpose of what you are using it for as a trades person in your business. In other words the tool could not have been used for any other reason prior to you buying it.
Also, your employer has to be willing to certify that having these specific tools was one of the conditions of you being able to work for them. You will have to get your employer to fill out the T2200 form as verification. Then you will need to attach a list of the applicable tools and the receipts of purchase to this for safe keeping. You do not have to send it with your tax return, but you must be able to produce it should the CRA request it.
Unfortunately these particular tools do not include your cell phone or various types of data processing equipment, although if it is used for measuring or calculating then the item may be eligible for the tax deduction.
Some trades have extended credits like the mechanics trade, for example. So to begin with you want to make sure that your particular trade is not fitting into another type of tax category that is going to offer additional incentives that come with a whole different set of rules.
In addition to this $500, credit you many also be eligible for a rebate concerning them for the GST/HST. To determine this you will need to read the rules for applying for the rebate and then fill out GST370, Employee and Partner GST/HST Rebate Application.
This all may sound a little complicated to you, and it may be worth your while to give Sam Seidman a call at 416-398-1700 and let him do your taxes for you.