Tax Tips & Advice

Tax Savings for Tradespeople

0 Comments 22 March 2012

My grandfather was an amazing carpenter. He could honestly build anything out of wood.  He could just look at a picture and re-create decks, furniture – you name it.  I remember watching him in his workshop, creating his masterpieces with dozens of different tools that I’d never even heard of before – reciprocating saw, rasps, even something called a cat’s paw.  It was a serious talent (and one that I clearly did not inherit).

Those tools must have cost a serious amount of money – but every great carpenter needs a great set of tools, right?  Which is why it’s good news for those just starting out that the Federal Government offers special tax savings for tradespersons, including the Tradesperson’s Tools Deduction.  This provides tradespersons like carpenters with an annual deduction of up to $500 to help defray the costs of eligible tools required to do their job.

Employers may even have more reason to hire a new grad if they’re an eligible Red Seal trade apprentice.  That’s because they can receive the Apprenticeship Job Creation Tax credit that’s equivalent to 10% of the employee’s salary, up to a maximum $2,000 per year, per apprentice.   There are dozens of trades currently listed as Red Seal trades, including carpenters.   And another benefit of becoming Red Seal certified?  The Red Seal is the only credential that grants a worker automatic recognition in each and every province and territory in Canada.

And let’s not forget about GST/HST rebates, either.  If these expenses are deducted from employment income, newly minted carpenters may be eligible for a full or partial rebate.

There are lots of other tax credits and deductions available at a provincial level too, so it’s important to check out websites like Trade Links, which details need to know information for tradespeople.  Combined with Turbo Tax software, tradespeople can feel confident they’re getting back every penny they deserve.

Related Posts Plugin for WordPress, Blogger...

Share your view

Post a comment

TurboTax

Twitter