Tax Savings For Tradespersons In Canada

By on December 3, 2014
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Are you a tradesperson in Canada? Here’s good news for you! Canadian Government has come up with special tax saving grants to help you earn better and save more. The purpose behind these grants is to provide a sense of motivation to tradesperson for being in trades. Read along to know more about who can benefit out of it and how?

Tax savings for employed tradespersons

If you are a tradesperson and you are employed in an organisation, you can claim a tax deduction of about $ 500 on purchase of eligible tools under Tradespersons tool deduction program. This is a grant of tax deduction is applicable on every eligible tool that you buy for your trade.

What is an eligible tool?

An eligible tool is any tool that is

  1. Bought to be used in your trades’ job and was not used for any other purpose before buying.
  2. Approved by your employer, to be used in your trades’ job to provide a better condition or result.
  3. Not a telephonic or electronic device, however if its purpose is to calculate, locate or measure it can be an eligible tool.

Tax savings for students pursuing apprenticeship program

Canada government has come up with “Apprenticeship incentive grant” and “Apprenticeship completion grant” for students who are pursuing and have completed their apprenticeship training program. It is intended to encourage young apprentices to complete their training program and get their trades’ certification. It allows a grant of about $ 2000 taxable cash grant.

Grants and its eligibility

  1. The apprenticeship incentive grant :

This program allows a grant of about $ 1000 to students who have completed their first or second year in apprenticeship program and are designated in a red seal trade.

  1. The apprenticeship completion grant

This grant is for registered tradespersons who have completed their apprenticeship training program and received their journey person certificates. It is also mandatory be designated in a red seal trade. This grant is worth about $ 2000.

Agenda behind these grants

Does the question “why government is providing these facilities to tradespersons?” arise in your mind? Answer to this is simple. Canada is facing a shortage for tradesperson. There is a huge demand for tradesperson everywhere. Canada government has taken this initiative to provide better facilities and special programs to tradesperson to motivate more people to make their careers in this field.

Applying for these grants requires filling an online form and attachment of relevant documents. You can apply for these grants and get lots of benefits out of it. And if you are still thinking of becoming a tradesperson, here’s another reason why you should.

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