Claiming tools for apprentice mechanics

[momof5boys]

I'm busy with my son's income tax and have a question I'm hoping some of you may be able to answer for me. He would be able to claim a deduction for tools he purchased. My question is this - can he add up all the tools he purchased over a two year period for this deduction. If so, I'm thinking of saving his receipts and using them all for next year. But I'm also thinking that this deduction has to be calculated on a year to year basis and a person can't just save up the amounts. Any thoughts on this? The CRA website isn't helpful at all.

[brunt]

Check out this link: http://www.taxtips.ca/personaltax/em...cemechanic.htm

From this:

The maximum deduction for eligible tools = (A-B) + C
where
A = the total cost of eligible tools purchased in the year (same tools used in tradesperson tools deduction calculation), plus, if you became employed as an apprentice mechanic for the first time during the year, the cost of eligible tools purchased during the last 3 months of the preceding year.

Pay particular attention to the parts that I bolded.

[Natalka]

Thanks mom for asking, and brunt for answering.

My son is working as a mechanic - and has been for a year at his current position, and did six months at a former one.
He's just waiting for his apprentice application to go through.
However, the $$$$ he's spent on tools already is crazy! I have piles of his receipts from the last two years.

My worry is, by next tax year he'll have barely anthing to claim already!

[jasperandchar]

Hope this helps

T2200 from Revenue Canada
http://www.cra-arc.gc.ca/E/pbg/tf/t2...0-fill-13e.pdf

http://docs.quicktaxweb.ca/ty10/engl...pl_trades.html

good luck

[momof5boys]

Thanks mom for asking, and brunt for answering.

My son is working as a mechanic - and has been for a year at his current position, and did six months at a former one.
He's just waiting for his apprentice application to go through.
However, the $$$$ he's spent on tools already is crazy! I have piles of his receipts from the last two years.

My worry is, by next tax year he'll have barely anthing to claim already!

They need to buy a crazy amount of tools to even claim a deduction. And it looks as if it does go by the year and receipts can't be saved over a couple of years (from what I gather from the CRA website).

[Natalka]

Yes I saw that - but I'm not going to figure anything out until I have to!
I'm pretty sure he's spent 10 grand already, easily - just a guess.

Tools and cars, that's all his money goes for, lol!

[momof3heathens]

Also your son maybe eligible for this:

http://www.esdc.gc.ca/en/support_app...es/grants.page

[beckie.c]

Thanks mom for asking, and brunt for answering.

My son is working as a mechanic - and has been for a year at his current position, and did six months at a former one.
He's just waiting for his apprentice application to go through.
However, the $$$$ he's spent on tools already is crazy! I have piles of his receipts from the last two years.

My worry is, by next tax year he'll have barely anthing to claim already!

My younger brother took his mechanic training at SIAST this year and spent about 10 grand with the mac/snap-on guys since they give students a discount. Crazy how expensive those tools are!

Both DH (plumber) and my brother were able to collect the apprentice incentive grants! In Sask you can apply for the first $1000 when you have your Year 2 card, and then the second $1000 when you have your year 3 card. Then after passing the journeyperson exam, you can file for the $2000 apprenticeship completion grant. Then they receive the Sask Graduate Retention Certificate if he's going to stay in SK to work. Lots of incentives for the trades

[Natalka]

beckie, your brother is lucky that he's already been accepted as an apprentice, my son is still waiting!
Biggest benefit has been the provincial grad retention program for taxes, it's too bad that will change next year.

[beckie.c]

beckie, your brother is lucky that he's already been accepted as an apprentice, my son is still waiting!
Biggest benefit has been the provincial grad retention program for taxes, it's too bad that will change next year.

Yeah, the graduate retention changes kind of suck. From what I've been reading this is going to impact a lot of those who are doing graduate studies right after university or those without a FT job. The changes won't make a difference for DH since his program is the $3000 maximum and his journeyperson wage and taxes are high enough. It will impact mine however since I have the $20K max and would have pushed forward about $400 this year, if the changes had been retroactive to 2014 taxes.

I hope your son finds an apprenticeship soon! DB kind of cheated and found a job in heavy duty mechanics... but that means he will have to repeat the 1st year of school, or at the very least challenge the exams. Everyone wants a 2/3/4 year, DH and his cousin both ran into that trouble and it took 5-7 months to find placements.

[Natalka]

His employer said he will take him on - he's been there a year and really likes it there. Apparently just waiting on paperwork...