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How do I claim the tools expense deduction for tradespeople?
by TurboTax• Updated 10 months ago
Prior to tax year 2023 the CRA allows tradespeople a maximum deduction of $500. After 2022 the maximum deduction is $1,000.
The deduction is for the remaining cost of tools and equipment purchased for work, after first reducing the expenses by an amount that is indexed annually. For 2023 the reduction amount is $1,368. So for example, $2,368 or more of eligible expenses in 2023 will result in the maximum deduction of $1,000. For prior years’ thresholds, see Indexation amounts. Your employer must certify (using form T2200) that the tools were required for you to do the work.
To claim this deduction in TurboTax, select your version of software and follow the steps provided:
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