If you were a tradesperson in 2016, use the following formula to calculate your maximum tradesperson's tools deduction for the cost of eligible tools you bought in 2016:

Maximum deduction for eligible tools is the lesser of:

a) \$500; and

b) the amount, if any, determined by the formula

A − \$1,161 where

A = the lesser of:

1. the total cost of eligible tools that you bought in 2016; and

plus the amount you received in 2016 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;

minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2016.

## Example

In 2016, Karsten is employed as an electrician with ABC Company, and he needs to purchase additional tools for his job. He paid \$2,500 for the tools he needed and he earned \$45,000 in employment income in 2016 as an electrician.

He calculates his maximum deduction for eligible tools in 2016 as follows:

Maximum deduction for eligible tools is the lesser of:

a) \$500; and

b) the amount, if any, determined by the formula

A − \$1,161 where

A = the lesser of:

1. \$2,500; and

2. \$45,000

Karsten's maximum deduction for 2016 is the lesser of \$500 and \$1,339 (\$2,500 − \$1,161). Karsten claims a deduction of \$500 at line 229 of his 2016 income tax and benefit return.