How much of my training costs can I claim as a business deduction?
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

How much of my training costs can I claim as a business deduction?

How much of my training costs can I claim as a business deduction?
 
 
 
 
How much of my training costs can I claim as a business deduction?
 
 
Training costs will not be deductible if they are considered to be “capital” in nature—that is, if they result in a lasting benefit to the taxpayer.
 
 
This could include the acquisition of a new skill or qualification. However, if training is taken to maintain, update or upgrade an existing skill, the costs are 100% deductible—that is, unless they are also being claimed as a non-refundable tax credit under the tuition fee amount
Examples of expenses that are 100% deductible:
·         A professional development course taken to maintain professional standards
·         A tax course taken by a lawyer or accountant, whether or not he/ she has previously done such work
·         A course on modern building materials taken by an architect
Therefore, training costs to attend a course that results in a degree, diploma, professional qualification or similar certificate are considered to be “capital” in nature. The costs would be scheduled in the Cumulative Eligible Capital account. Examples include:
·         Training by a medical practitioner to qualify as a specialist
·         A lawyer taking an engineering course unrelated to his/her legal practice
·         A professor taking a sideline course to acquire skills in a sideline business
Personal PortionAny portion of the costs that are personal in nature cannot be deducted. Personal costs are assessed on a case-by-case basis using factors such as the duration and location of the course, as well as the number of days in which no training occurred. It is also important that the costs not be misclassified. If they are really convention expenses, you could be restricted to the two-per-year and territorial-scope rules identified earlier.
Location and Duration  Deductibility of expenses will be questioned if courses are taken abroad or in a resort, particularly if you follow up the course with a personal holiday. If equivalent training was available locally, your expenses for the trip to study at the exotic location will likely be considered personal. Costs for expenses of food and lodging will not be allowed for any days in which no training occurred. CRA will make an exception and allow costs for arrival and departure dates as well as weekends. Remember that the costs of claiming food and auto are subject to the normal limitations.
Deductibility of Seminars Are seminars classified as conventions or training courses? This is a question of fact. Conventions generally include a formal meeting of members of an organization or association. Training courses generally have a classroom format and a formal course of study that results in testing and the possibility of certification. Training courses are treated more favourably in that you can attend more than two in a year; however, Interpretation Bulletin 357R2 makes a noteworthy comment: “The total time taken in attending courses in any one year must not be so great as to interfere with the carrying on of the taxpayer’s business. If that happens, expenses will not be deductible.”
 
 
 
 
 

2 Comments to How much of my training costs can I claim as a business deduction? :

Comments RSS
Writing RFP proposals on January-09-14 7:21 AM
I would like to thank you for the efforts you have made in writing this post....How much of my training costs can I claim as a business deduction? . I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me
Reply to comment


Try This Site on January-23-14 3:12 AM
Thanks for posting this informative article, which is an excellent example of superior writing. I really appreciate it and I think people will like you.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment