Aviation Medical And Transport Canada Licence Fees On Taxes?

[BH12]

I am a Canadian Commercial Helicopter Pilot. It is tax time again. Has anyone any advice as to where one might be able to claim our annual/biannual aviation medical exam cost and Transport Canada 55.00 License Fee? Seems to me it would fall under 'employment expenses' or perhaps 'professional fees'?? I have had some pilots say they claim it here but nobody seems to really be able to provide the appropriate literature that makes it legitimate. Any thoughts?

[Twin Helix]

As far as the medical is concerned, you could make a case for it to fall under 'medical expenses' for taxes, but you need equivalent to 3% (if memory serves) of your income in total medical expenses to be able to claim any of them.

 

As for the license fee, if you fly as a contract pilot you might be wise to incorporate yourself, then you can write down just about everything as a business expense, also 'pay' yourself less which leads to lower personal income tax as well as lower % on business income than you would pay as an individual for your paycheque. Under an incorporation you could also write off your medicals.

 

I'm not flying enough to justify incorporating myself yet so I'm going based on the conversations I've had over the years rather than personal experience.

 

More tax (and relationship) advice is available in exchange for low-time openings.

[Skidz]

I also have a brand-new helmet to expense, but can't find where to put it. Thing is, our trade doesn't fall under any of those recognized by Revenue Canada for deducting toll expenses and such. Any advice welcome...

[Daz]

From searching my way around these forums I've learned that some folks have luck with a form T2200 - it lets one claim business expenses required for work, but not reimbursed by your employer - such as my new helmet just purchased a few months back. I have the form and I'll get it signed by the boss and give it a shot, but i have no idea if it'll work. I wonder if our medical fees (or at least the Transport Canada $55 medical "processing" fee) could be covered by this form as well?

 

At any rate, I printed the form off from somewhere on the Revenue Canada website. Any one else had luck with the T2200?

[Skidz]

Thanks for the info. I just looked into it, ans it looks like I need to use the following package:

 

http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044-13e.pdf

 

Anyone here ever had any luck getting these signed off by their bosses ?

[sven]

The T2200 form should work as your medical is a condition for employment.

No medical = no flying/work.

[DGP]

The last helmet I bought was half paid for by my employer and I paid the rest,handed the receipt to my accountant who sent it in as required equipment for employment and it went through.He had said they may reject it but I had no problem.

[skullcap]

I think helmets count as safety equipment when importing as well so should not be duty.

[ThreePer]

T2200, and the associated boxes while doing your taxes, are the same form that Engineers use to claim the $500 in "tradesperson's tools" allowance. It is sweet F all in the grand scheme of things, but it makes me feel warm and fuzzy inside pretending it does.

[Bell-powered]

Here is the thing, revenue canada doesnt look at every persons taxes, its all an automated system that is putting in the data. So just because people you know claim things and "getting away with it" just means that it is a possibility that if you get audited you might be in trouble.

I have been claiming licensing fees and medicals forever, but this year I took it all to a pretty expensive accountant and he gave me all the run down. Cant really claim it, but he said that I could do it, and bite the bullet if I get audited. But for the 175$ that it adds up to, whats the point, it wont do much anyway.

Thats where its great to be contract rather than employed I guess.

I am also looking to buy a new helmet, and It would be sick to be able to write that off..

Im very interested to hear if anyone ever got this form done up like Skidz mentioned (http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044-13e.pdf)