“If you are an employed tradesperson, you may be eligible for federal tax incentives,” says Chartered Accountant Giancarlo Di Maio, Partner, PricewaterhouseCoopers LLP in Windsor.
According to Di Maio, an annual taxable $1,000 federal cash grant is offered to apprentices who successfully complete their first year, second year or level of a qualifying apprenticeship program in one of the Red Seal Trades.
“Further, tradespeople who acquire eligible tools for employment can claim a deduction for a portion of the cost to a maximum of $500 per year. To qualify for the tools’ deduction, an employer must certify that the employee is required to have the tools as a condition of, and for use in, the employment,” says Di Maio. “As an additional benefit, the employee will be eligible for a rebate of the GST paid on the portion of the purchase price of the tools that qualify for the deduction.”
“Apprentice vehicle mechanics can claim both the tradespeople’s tools deduction and the apprentice vehicle mechanics’ tools deduction, which allows a deduction for the cost of eligible new tools acquired in a year that exceeds a threshold.”
Brought to you by the Institute of Chartered Accountants of Ontario.
The Institute of Chartered Accountants of Ontario is the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 CA students. Since 1879, the Institute has protected the public interest through the CA profession’s high standards of qualification and the enforcement of its rules of professional conduct. The Institute works in partnership with the other provincial Institutes of Chartered Accountants and the Canadian Institute of Chartered Accountants to provide national standards and programs that are used as examples around the world. </em>
