If you are employed and your employer requires that you pay some of your expenses required to carry out your duties, consider expenses that you can deduct on your personal income tax return. There are additional deductions allowed for individuals earning commission income versus a salary. In order to deduct expenses against employment income, your employer must complete form T2200 that sets out the conditions of your employment.

Employees Earning Commission Income

Against commission income, you can deduct expenses such as parking, lodging, cellular telephone airtime and some office supplies. If you lease computers, cellular telephones, fax machines, etc., you can deduct the percentage of the lease cost that reasonably relates to your employment. If you buy this equipment, you cannot deduct the cost or claim capital cost allowance (depreciation).

You can deduct 50% of food and beverages if your employer requires you to be away from the municipal area for at least 12 hours. In addition, 50% of the cost of entertaining clients is deductible.

Some other acceptable deductions include the salary required to pay an assistant, office rent, office in the home expenses and travel costs.

Commission employees can deduct most expenses only to the extent of their commission income. However, traveling expenses (food and lodging) and motor vehicle expenses are not subject to this limit.