According to the Canada Revenue Agency (CRA), commissioned employees may deduct expenses associated with commission income as long as they meet certain conditions.
To deduct employment expenses you paid to earn commission income, you have to meet all following conditions:
- Under your contract of employment, you had to pay for your own expenses.
Note:
You are not considered to have paid your own motor vehicle expenses if your employer reimburses you or you refuse a reimbursement or reasonable allowance from your employer.
- You were normally required to work away from your employer's place of business.
- You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated.
- You did not receive a non-taxable allowance for travelling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometre rate.
- You keep a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
After you have met these conditions there are certain categories that you can report expenses for. These categories are as follows:
* Accounting and legal fees
* Advertising and promotion
* Allowable Motor Vehicle Expenses
* Food and Beverages
* Entertainment Expenses
* Lodging
* Parking
* Supplies
* Licences
* Bonding Premiums
* Medical Underwriting fees
* Computers, cell phones, and other equipment
* Salaries for an assistant
* Office rent
* Training Costs
* Travel Fare
* Home office expenses for employees
* Excess Employees profit-sharing plan (EPSP) amounts
For more information, check out: Canada Revenue Agency (CRA) - Commission Employees
Also, Canada Revenue Agency (CRA) - Employment Conditions
Thank you for choosing TurboTax.
Sign In
Canada (English)
EN
