20 December 1994 CICA Roundtable, 9430840 - EMPLOYMENT EXPENSE - FAX MACHINE, CELL PHONE ETC

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EMPLOYMENT EXPENSE - FAX MACHINE, CELL PHONE ETC
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8(1)(i) 8(1)(j)
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9430840
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Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Revenue Canada Roundtable
1994 Halifax CICA
December, 1994

QUESTION No. 9

EMPLOYMENT EXPENSES - FAX MACHINES, CELLULAR PHONES, ETC.

What is Revenue Canada's policy regarding deductions from employment income for employees who utilize their personal fax machines, cellular phones and computers in the performance of their duties?

DEPARTMENT'S POSITION

In computing an individual's income from employment the expenses that may be deducted is limited to those described in section 8 of the Income Tax Act. Paragraph 8(1)(f) governs the expenses of individuals employed in connection with the selling of property or negotiating of contracts. Subparagraph (v) excludes, from those amounts that may be deductible, outlays on account of capital except as specifically provided in paragraph 8(1)(j) (motor vehicles and aircraft). Thus capital expenditures and capital cost allowances in respect of fax machines, cellular phones and computers are not deductible.

Similarly, the deductible expenses of performing duties that are available to other employees are described in paragraph 8(1)(i) of the Act. Subparagraph (iii) describes as an allowable expense the cost of supplies consumed directly in the performance of the duties of employment, which may include related airtime expenses for a cellular phone and long-distance telephone tolls but does not include amounts in respect of capital cost. See Interpretation Bulletin IT-352R2.

Author: J.A. Szeszycki
File: 943083
Date: December 20, 1994