2010 Personal Tax Deductions Canada

What can you deduct on your personal tax return for the 2010 taxation year? This article focuses on personal tax deductions for employees.

If you are employed, there are number of expenses that you are able to deduct on your personal tax return:

Travel expenses – 2010 Personal Tax Deductions Canada

Travel expenses include:

• Airfare, hotels & lodging;
• Taxis;
• Train; and
• TTC,

as long as these expenses were not reimbursed by your employer.

Automobile (car) expenses

Automobile (car) expenses include

• Fuel and oil
• Repairs and maintenance
• Insurance
• Capital cost allowance at a rate of 30%, if you own your car
• Lease costs (to a maximum of $800 + taxes per month), if you lease your vehicle

Note that in order to deduct automobile expenses, you must be required to use your automobile as a condition of your employment agreement and you must keep track of the kilometers driven.

Home office expenses – 2010 Personal Tax Deductions Canada

Home office expenses include:

• Utilities,
• Property taxes
• Insurance
• Maintenance and repairs

Home office expenses can only be deducted if you are required to work from home as a condition of your employment. In addition, your employer must complete form T2200, “Declaration of Conditions of Employment.”

Other Employment Expenses in 2010

• Professional and union dues
• Rent paid for an office
• Supplies and tools
• Salaries paid to an assistant

Other important ‘2010 personal tax deductions in Canada’ that you should be aware of that are not related to employment income are:

RRSP Contributions – 2010 Personal Tax Deductions Canada

RRSP contributions made in 2010 and in the first 60 days of 2010 can be deducted on your 2010 personal tax return. The deadline for RRSP contributions for the 2010 taxation year is March 1, 2011. Make sure you visit your local bank branch or financial advisor as soon as possible.

Child care expenses

Child care expenses include:

• Fees paid to a babysitter
• Salary paid to a Nanny
• PLASP
• After school program
• Daycare

Child care expenses must be deducted by the lower income spouse.

ABOUT THE AUTHOR

ALLAN MADAN

CPA, CA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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