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Self-employed
Yes, unfortunately it's most likely because $525.07 is not high enough to claim for a credit.
The calculation is explained in the CRA link, however let's go over this with your numbers:
You paid $525.07 for your tools and I will use a fictional income of $50,000 just for this example.
Maximum deduction for eligible tools is the lesser of:
a) $500; and
b) the amount, if any, determined by the formula
A minus $1,127 where
A = the lesser of:
1. $525.07; and
2. $50,000
Your maximum deduction is the lesser of $500 and $-601.93 ($525.07 - $1,127).
So your deduction is $0 in this case.
The calculation is explained in the CRA link, however let's go over this with your numbers:
You paid $525.07 for your tools and I will use a fictional income of $50,000 just for this example.
Maximum deduction for eligible tools is the lesser of:
a) $500; and
b) the amount, if any, determined by the formula
A minus $1,127 where
A = the lesser of:
1. $525.07; and
2. $50,000
Your maximum deduction is the lesser of $500 and $-601.93 ($525.07 - $1,127).
So your deduction is $0 in this case.
‎October 29, 2019
8:19 PM