I have more than enough to claim the maximum tool allowance and after $1700 dollars you get know more money back that the $500 which is the max. So I would like to carry over some of the cost of my $3000 tool box to next year. Can I do that?
I apologies if you have not received an answer earlier in your submission. Canada Revenue has not made any allowance for carry forward tool costs that exceed the maximum claim of $500. However the excess tool costs will be used in a future year to avoid or reduce any recapture of deductions in the event that you sell any of your tools.
As an example you are claiming $4000 worth of tolls and receive a deduction for $500. In a future year you sell $2000 worth of these tools. You would claim the sold tool income against the undeducted excess of $3500 before having to repay the government any of the $500 credit received in 2016.
If that helps any.
I apologies if you have not received an answer earlier in your submission. Canada Revenue has not made any allowance for carry forward tool costs that exceed the maximum claim of $500. However the excess tool costs will be used in a future year to avoid or reduce any recapture of deductions in the event that you sell any of your tools.
As an example you are claiming $4000 worth of tolls and receive a deduction for $500. In a future year you sell $2000 worth of these tools. You would claim the sold tool income against the undeducted excess of $3500 before having to repay the government any of the $500 credit received in 2016.
If that helps any.