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Are professional development courses tax deductible?
11-16-2010, 10:05 AM
Post: #1
Are professional development courses tax deductible?
I would like to know if professional development courses are tax deductible or not. I get conflicting answers from different people.HuhHuhHuhHuh
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11-16-2010, 10:36 AM
Post: #2
RE: Are professional development courses tax deductible?
See Canada Revenue Agency Intrepretation Bulletin IT357R2 http://www.cra-arc.gc.ca/E/pub/tp/it357r...7r2-e.html

If the training is capital in nature, it is not tax deductible. However, if there is a tuition fee receipt from an educational institution, you can claim a tuition fee tax credit.

If the training is current in nature, then it is tax deductible.

Read the article on this subject. http://www.accountingtroubleshooters.com...ility.html
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11-17-2010, 06:15 AM
Post: #3
RE: Are professional development courses tax deductible?
What about individual coaching fees? one-to-one coaching for communication skills, sales skills, etc. Are these tax deductible?
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11-25-2010, 07:17 AM
Post: #4
RE: Are professional development courses tax deductible?
Generally speaking, costs incurred in connection with a course or training taken to enable a professional to learn the latest methods of carrying on his or her profession (update, or maintain an existing qualification) may be allowable deductions through a personal tax or business tax returns.

Business coaching can be deductible expenses, but life coaching, relationship coaching will be considered personal expenses. Sometimes certain type of coaching may be a part business, part personal in nature. (an example will be work-life balance coaching). There are now several types of coaching, so each will have to be treated differently.
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12-30-2010, 03:17 PM
Post: #5
RE: Are professional development courses tax deductible?
The majority of a professional service company's expenses are labor related. This is why many companies chose to do one or two things to decrease their expenses; decrease benefits or reduce staff.
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02-28-2012, 04:08 AM
Post: #6
RE: Are professional development courses tax deductible?
Sorry to bring up an old thread....

I just got off the phone with a CRA representative who told me that the statements regarding professional development courses in IT357R2 refer only to self-employed individuals (as subsection 18(1) of the Income Tax Act is referring to self-employed individuals).

On your article on the subject you seem to suggest that both self-employed and salaried individuals can claim this amount as you provide instructions for both types of individuals.

Could you comment on this please?

Thanks!
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03-05-2012, 04:36 AM
Post: #7
RE: Are professional development courses tax deductible?
You are right, Income Tax Act generally do not provide training expenses to be deductible for employees except in very special conditions. Check out Intrepretation bullentin IT-357R2. http://www.cra-arc.gc.ca/E/pub/tp/it357r2/it357r2-e.txt

INTERPRETATION BULLETIN NUMBER: IT-357R2 SUBJECT: INCOME TAX ACT
Expenses of Training REFERENCE: Subsection 18(1) (also section 67, subsections 15(1) and 20(10),
and paragraph 6(1)(a))

8. Although a tax credit in respect of tuition fees paid to certain
educational institutions is available to taxpayers (see the current version of
IT-516) including those who are employees, the Income Tax Act generally does
not provide for an employee to deduct training expenses.

However, an exception to this general rule can occur under paragraph 8(1)(f).

That is, a taxpayer who is employed in connection with the selling of property or negotiating of
contracts for his or her employer and who is remunerated in whole or part by
commissions or other similar amounts may be entitled to deduct training
expenses under paragraph 8(1)(f), as was found by the Tax Court of Canada in
the case of Doris J. Neville v. M.N.R., 88 DTC 1546, {1988} 2 C.T.C. 2201. In
order to deduct training expenses under paragraph 8(1)(f), all the
requirements thereof must be satisfied. These requirements are described under
the heading "Salespersons" in the current version of IT-522. The comments in
2, 5 and 6 above with respect to self-employed taxpayers should also be
considered in connection with a deduction of training expenses under paragraph
8(1)(f) by an employee as described above.
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06-24-2014, 04:59 AM
Post: #8
RE: Are professional development courses tax deductible?
It’s really great posts.

dubli
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01-27-2015, 01:18 AM
Post: #9
RE: Are professional development courses tax deductible?
Great! Very detailed responses with references!

Sincerely,
Madan CA
http://www.madanca.com
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