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Allowable Motor Vehicle Expenses: |
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Motor vehicle expenses will be allowable if the tax payer meets all of the following conditions: |
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You are normally required to work away from employer's place of business or in difference places. |
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Under your contract or employment, you had to pay your own vehicle expenses. |
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You did not receive a non taxable allowance for motor vehicle expenses. Generally, an allowance is non-taxable when it is based solely on a reasonable per kilometer rate. |
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You keep a log on a daily basis and declaration of condition of employment that has been signed by your employer. |
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| Work-space-in-the-home expenses: |
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You can deduct expenses you paid for the employment use of a work space in your home, as long as you meet one of the following conditions: |
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The work space is where you mainly (more than 50% of the time) do your work; |
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You use the workspace only to earn your employment income and on a regular and continuous basis for meeting clients or customers. Keep with your records a copy of Form T2200, Declaration of Conditions of Employment that has been completed and signed by your employer.You can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating, maintenance, property taxes, and home insurance. However, you cannot deduct mortgage interest or capital cost allowance.
If your office space is in a rented house or apartment where you live, deduct the portion of the rent as well as any maintenance costs you paid that relates to the work space.
You can only deduct work space expenses from the income to which the expenses relate, and not from any other income.
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| Other employment expenses: |
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You can deduct certain expenses you paid to earn employment income. You can do this only if your employment contract required you to pay the expenses, and either you did not receive an allowance for them, or the allowance you received is included in your income.
Note: Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as most tools and clothing. You have to keep records for each year you claim expenses. You can deduct salary or wages you included in income for 2007 or a previous year, if you repaid them in 2007. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits or workers' compensation benefits. However, you cannot deduct more than the income you received when you did not perform the duties of your employment. If you are an employee who is eligible to claim expenses against employment income, you must submit a completed Form T777, Statement of Employment Expenses with your return. You also have to keep a completed copy of Form T2200, Declaration of Conditions of Employment signed by your employer. |
