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: Whether employment expenses can be deducted from OAS & CPP benefits.
Position: No.
Reasons: Section 8 permits the deduction of certain expenses in computing income from an office or employment. Any loss realized from employment pursuant to subsection 5(2) of the Act may be deducted from other sources by virtue of paragraph 3(d).
XXXXXXXXXX 1999-001434
Wm. P. Guglich
January 20, 2000
Dear Sirs:
Re: Deduction of Employment Expenses
This is in reply to your letter of December 10, 1999, requesting our views as to whether employment expenses may be deducted from other income such as OAS and CPP benefits.
Section 8 of the Act permits certain expenses to be deducted in computing income from an office or employment. Included thereunder is a deduction for motor vehicle expenses pursuant to paragraph 8(1)(h.1) of the Act. If the taxpayer realizes a loss from employment pursuant to subsection 5(2) of the Act, such loss may, in computing income for the year, be deducted from other sources of income by virtue of paragraph 3(d). In general terms when the section 8 deductions that are wholly applicable to a particular office or employment exceed the total of the amounts required to be included in income under sections 5, 6 and 7 of the Act, a taxpayer would have a loss from employment.
We trust our comments will be of assistance.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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