21 April 1997 External T.I. 9707495 - DEDUCTIBILITY

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.

Principal Issues:

deduction of expenses to earn income

Position:

section 8

Reasons:

law

XXXXXXXXXX 970749

April 21, 1997

Dear XXXXXXXXXX:

Re: Expenses to Earn Employment Income

We are writing in response to your letter dated March 12, 1997 wherein you requested our comments with respect to whether as an individual earning employment income you would be entitled to deduct certain expenses in determining your taxable income for tax purposes.

In this regard we offer the following general comments.

In computing an individual's income from employment the expenses that may be deducted are limited to those described in section 8 of the Income Tax Act (the "Act"). Generally, in order for certain expenses to be deductible by an employee there must be a declaration by the employer certifying the conditions of employment. This requirement is described in paragraph 13 of Interpretation Bulletin IT-352R2 entitled "Employee's Expenses, Including Work Space in Home Expenses" (copy enclosed).

Professional Federation fees described in your letter would be deductible pursuant to paragraph 8(1)(i) of the Act.

With respect to medical expenses that are eligible for the medical expense tax credit we have enclosed a copy of IT-519R which describes in detail what are considered to be eligible medical expenses.

We hope our comments will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch