Carpenter

Tax guide for Canadian self-employed carpenters and woodworkers

Allowable Expenses

• Tools & equipment — Power tools, hand tools, workbench — CCA Class 8 (20%/year)
• Vehicle costs — Van or truck — business-use proportion of fuel, insurance, repairs
• Materials (COGS) — Lumber, fasteners, finishes — materials used in client projects
• Trade licences & dues — Red Seal certificate maintenance, union dues (if applicable)
• Safety equipment — PPE: safety glasses, gloves, ear protection, dust mask
• Vehicle expenses — Work truck mileage at CRA rates or actual vehicle costs for job site travel

Tax Tips

• Materials you purchase for a specific client project are cost of goods sold — track by job
• Tools costing over C$500 are CCA Class 8 assets (20%/year) — don't expense them all at once
• A work van used 80% for business travel is deductible at 80% of actual costs
• Red Seal examination and renewal fees are deductible professional development costs

Frequently Asked Questions

How do I claim my carpentry tools in Canada?

Tools costing C$500 or more are capital assets in CCA Class 8 (20% declining balance per year). Tools under C$500 may qualify for Class 12 at 100% deduction in the year of purchase. Keep all purchase receipts and note the business purpose.