Employment expenses of an employee in forestryIf you are an employee working in logging, you can deduct expenses for the purchase and use of a power saw (including a chain saw or tree trimmer).
For residents of Quebec, if you are required under your employment contract to pay the expenses incurred for the use of a snowmobile or all-terrain vehicle, you may include these expenses.
For expenses that are not federally eligible in the first field, you enter $0,00 and click on the "Maple Leaf" icon to open a new field for Quebec or you can enter the eligible expense in Quebec.
To claim this deduction, please follow these steps:
1. On the "Left-side menu on the Interview tab", select "Interview setup".
2. On the right-hand page, go to the "Employment and other benefits" group, check the box for "Employment expenses" and click "Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview tab" and select "Employment expenses".
4. On the right-hand side page, click on the plus "+" icon to the right of the line "Eligible employment expenses for forestry operations".
5. On the page entitled "Employment Expenses - Employees in Logging". You must enter the name of your employer, and other relevant information. As well as your working expenses and all other relevant information, such as the purchase of a chain saw or brush cutter, making sure to enter the resale value of your tool, and click "Next" at the bottom of the page.
6. To enter your eligible motor vehicle expenses, click on the subsection "Motor vehicle expenses". In this section, choose the option that corresponds to your situation.
Note that you cannot deduct expenses for travelling from your home to a place where you should report to work on a regular basis. These expenses are considered personal expenses.
To enter the conditions of employment, click on "Employment conditions" under the "Left side menu on the Interview tab" and answer the questions. This entry will only be valid at the federal level. For Quebec residents, describe your employment conditions by clicking on "Employment conditions - Quebec" and enter the required information.
NOTE: You must keep a record of all the expenses you incurred. This register must be kept for a period of six (6) years after the end of the tax year, as the CRA (and/or for Quebec residents, Revenu Québec) may request some of your documents.
The amount of eligible expenses will be entered on line 22900 of the federal return and on line 207 of the Quebec return. Furthermore, the program will generate federal Form T777 as well as Quebec Form TP-78.
For more information, please refer to the CRA website below:
In addition, you can consult the T4044 guide on the CRA website:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
For Revenu Quebec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-118-v/ID: 20190917083026DEXX.xml
Webpage: KPA350-20190917083026DE.htm