Where you earn income from employment and are required by the terms of your employment to incur certain expenses, you may be able to claim a deduction in respect of these expenses on your tax return. Such expenses might include sales expenses for commission employees, travel expenses, motor vehicle expenses, professional or union dues, office rent (including home office expenses), assistant's salary, and consumable supplies. In general, with the exception of depreciation in respect of an automobile or aircraft, employees are not permitted to claim any deductions in respect of capital expenditures.
Your employer must certify the conditions of your employment on Form T2200 Declaration of Conditions of Employment to verify your eligibility to claim employment expenses. The Canada Revenue Agency does not require you to file the form with your tax return; however you must retain it in case they wish to see it.
In addition to the restriction on capital expenditures, there are other specific restrictions and limits on the expenses you may deduct. Consult a Chartered Accountant to determine what employment expenses you may be able to claim.
Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.