Tradesperson's Tool Deduction
A deduction will also be provided for the cost of eligible tools acquired by an employed tradesperson in excess of $1,000. However, there will be a maximum claim of $500. The deduction will apply to eligible tools acquired after May 2, 2006.
In order for the deduction to be claimed, employers will have to certify that the employee was required to purchase the tools as a condition of his or her employment. The only other requirement is that the tools must not have been used for any other purpose prior to their acquisition by the tradesperson. The deduction may not be claimed for electronic communication devices and electronic data processing equipment, which will rule out claims for cell phones and computers.
The employee will also be able to claim the GST/HST rebate on the deductible portion of the tools' cost.
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