Acco340Lecture 2-3 - Employment Income

6 apprentice mechanics tool costs ita 81r allowed by

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                                                                                                               6.       APPRENTICE MECHANIC’S TOOL COSTS-ITA 8(1)(r)               -Allowed by individuals with employment income earned as an eligible mechanic and whose employer requires them to               purchase eligible tools                       - For 2010 , the deduction is  up to $500  based on a formula   7.       TRADESPEOPLE’S TOOL EXPENSE    ITA 8(1)(s)                                                                                                                -Allowed by individuals with employment income and whose employer requires them to purchase eligible tools               - For 2010 , the deduction is up to $500. However, only costs in excess of $1,051 can be considered. Effectively, $1,551                of tools must be purchased in order to claim the maximum deduction of $500.( No carry forward for un-deducted               amounts)                                                                             SUMMARY An expense needs to be viewed (for tax purposes) within the perspective of how it is incurred and on the conditions of   employment  Example: professional dues Regarding an employee working in the Accounting dept and needs to be a member of a professional accounting association (eg  CA,CGA,CMA) in order to meet the job requirements :
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1 .If the employee pays the professional dues and  is not reimbursed by the employer   - Question is  whether the amount paid is  deductible or not  by the employee? Answer – yes, it is an employment  requirement  2. If the employer either directly pays the professional association or reimburses the employee who has made the payment    -Question is  whether the employer payment is a  taxable benefit or not  for the employee? Answer-  no, as per the federal  ITA                                                                 Disbursements not allowed as a Deduction, but eligible for a Tax Credit                                                                                                                                                  There are disbursements made by individuals who earn employment (or other income) or amounts withheld from an  employee’s salary that are  
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