14 March 1997 External T.I. 9701805 - EMPLOYMENT EXPENSES

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		970180
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

March 14, 1997

Dear Sirs:

Re: Employment Expenses and Computers

This is in reply to your letter of January 7, 1997 concerning the above noted subject. We also acknowledge the letter of December 19, 1996 from XXXXXXXXXX which you enclosed.

Your concern is whether a computer purchased by a teacher can be deducted as an employment related expense for income tax purposes.

Subsection 8(2) of the Income Tax Act (the Act) provides that no deduction shall be made in computing a taxpayer's income for a taxation year from an office or employment except as permitted by section 8. There is no provision in section 8 which permits an employee to deduct the cost of a personal computer. This is explained on page 6 (copy attached) of the Department's 1996 Employment Expense Guide.

Since the cost of a personal computer is a capital outlay, it is our view that it could not be regarded as the "cost of supplies" under subparagraph 8(1)(i)(iii) of the Act (even if the employer required the employees to purchase one to carry out their duties).

While we regret that we could not give you a favourable reply, we trust our comments will be of assistance to you.

Yours truly,

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch