However, except for interest and capital cost allowance 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.
To deduct the expenses you paid to earn commission income, you must 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 were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales you made or the contracts you negotiated.
- You did not receive a non - taxable allowance for travelling expenses. Generally, an allowance is non - taxable as long as it is a reasonable amount. For example, an allowance for a motor vehicle is usually non - taxable when it is based solely on a reasonable per - kilometre rate.
- You keep with your records a completed copy of Form T2200, Declaration of Conditions of Employment.
Allowable expenses include:
- Accounting and legal fees
- Advertising and promotion expenses
- Allowable motor vehicle expenses (including capital cost allowance)
- Entertainment of clients
- Food, beverages & lodging when required to travel on business
- Parking (excluding parking at your employer's office)
- Office supplies, telephone expenses
- Office rental or home office
- Training and professional development expenses
You can also deduct the percentage of airtime expenses for a
cellular telephone that reasonably relates to earning your commission income. You may not
deduct amounts you paid to connect or license the cellular telephone.
If you buy a computer, cellular telephone, fax machine, or other such equipment, you may not deduct the cost. Also, you are not permitted to deduct capital cost allowance or interest you paid on money you borrowed to buy this equipment.
A copy of Form T777 is available in PDF format by clicking here.
For more information please call (613) 727-3845 or e-mail: info@robertson-sharpe.com
