2010 Canada Tax Return
 

A couple of quick questions:

1. Can UK professional subscription fees be allowed against tax on a Canadian tax return? This would be the Institution of Civil Engineers.
2. On medical expenses it appears expenses over the lower of $2,024 or 3% of income can be set against tax. Mrs jimf has only income from a UK rental so 3% of that is $300 or so. Can all the familly medical expenses be set against that lower threshold?

Re: 2010 Canada Tax Return
 

An employee may deduct annual professional membership dues in computing the income or loss from an office or employment to the extent that they may reasonably be regarded as applicable to that source of income and provided that

(a) they are annual dues (in contrast with entrance fees) necessary to maintain professional status,

(b) the amount claimed is paid in the taxation year and the employee is not reimbursed or entitled to be reimbursed, and

(c) the professional status is recognized by a Canadian, provincial, or foreign statute.

Since it is the employee's professional status (not the organization's) that must be recognized by statute, dues are only deductible where membership in an organization is necessary for the employee to retain professional status.

If Mrs jimf has insufficient income to be taxable, there would be no benefit in her claiming the medical expenses.

Re: 2010 Canada Tax Return
 

Questionable. Everyone does and I have not yet seen this challenged by the CRA. If it was you would need to demonstrate that it is necessary for your current employment.


Yes, but what canmoreskier said.

Re: 2010 Canada Tax Return
 

On the professional fees against the three criteria the answers would be:

(a) yes - the dues are necessary to be able to maintain the professional status recognised by foreign statute in (c) below

(b) yes


(c) yes - professional status is recognised by UK statute


(a) they are annual dues (in contrast with entrance fees) necessary to maintain professional status,

(b) the amount claimed is paid in the taxation year and the employee is not reimbursed or entitled to be reimbursed, and

(c) the professional status is recognized by a Canadian, provincial, or foreign statute.

I think it can be reasonably considered that having professional status as a civil engineer is reasonably applicable to earnings from working as a civil engineer.

I think I'll put it in and see what happens.

Re: 2010 Canada Tax Return
 

Yes, that is what everyone else does. I know a couple of engineers who have been claiming both UK and Canadian professional fees for at least 25 years with no problems.