Ref: https://solidtax.ca/wp-content/uploads/2022/09/t4044-21e-Employment-Expenses.pdf
I am a commission employee. Can I deduct my employment expenses?
To deduct the expenses you paid to earn commission income, you have to meet all of the following conditions:
- Under your contract of employment, you had to pay your own expenses.
- You were normally required to work away from your employer’s place of business.
- You did not receive a non-taxable allowance. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometre rate
- You keep a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
However, except for interest and capital cost allowance (CCA) on your vehicle, the total of the expenses you can deduct cannot be more than the commissions or similar amounts you received in the year.
If your total commission expenses (except interest and CCA on your vehicle) are more than the commissions or similar amounts you received, there is another method you can use to claim expenses. Using this method might be to your advantage because it allows you to claim your expenses as a salaried employee instead of as a commission employee. If you deduct expenses this way, your claim is not limited to the commissions you received in the year.
I don’t have a Form T2200 from my employer, can I claim my employment expenses?
No, you must have a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
I would like to claim my vehicle expenses since I used it to earn employment income. How should I keep records?
The records should include the total kilometres you drove, as well as the kilometres you drove to earn employment income. The record for each trip you took to earn employment income should list the date, destination, purpose and number of kilometres.
Record the odometer reading of each vehicle at the beginning and again at the end of the year.
I work from home occasionally. Can I claim my home office as employment expenses?
No. To deduct expenses you paid for the employment use of a workspace in your home, you must meet one of the following conditions:
- The workspace is where you mainly (more than 50% of the time) do your work.
- You use the workspace only to earn your employment income. You also must use it on a regular and continuous basis for meeting clients, customers or other people in the course of your employment duties.
I park my car at my employer’s office. Can I claim the parking cost?
No. You cannot deduct the cost of parking at your employer’s office, such as monthly or daily parking fees or the cost of traffic infractions such as speeding tickets. These are personal costs.
Can I deduct mortgage interest on my employment expenses?
No. you cannot deduct mortgage interest or the capital cost allowance.
