Training Bond

[Turbine]

I'm in the process of paying back my training bond. Does anyone know if there is a way and the best method to claim the amount at tax time. I looked at the T2200 form and that leans more towards contract work to which I was not a contract pilot. The other is the T777 which looks more plausable.

http://www.cra-arc.gc.ca/E/pbg/tf/t2200/README.html

http://www.cra-arc.gc.ca/E/pbg/tf/t777/README.html
(line 9270 - other expenses)[/url]

Any helpful info would be great!!
Thanks.

[oldncold]

the post plausable and legal way is under the line of professional
fees and or education deduction.

you will need a letter from your employer that states
1/ this training is/ was required for continuing education and employment purposes.
2/ a certificate of training completion from ie simcom or flightsafety etc
with certificataion that the training was not offered in canada .
3/ transport canada >cars ;l re ppc's in order to prove you can not fly said aircraft without being properly trained . obvious to us but not to the tax people . they also don't like to argue amongst depts= makes them look silly .

if the employer has made the payments you are only allowed to deduct the inerest. if you have left the employer then only the balance and the
interest. . it does take some persistance and don't take no for answer right off the bat.
they work on a percentage that most won't bother after the first denial
of claim . make sure all other things are in order. as you will be up for a
reassessment.

[SplitS]

I just finished writing a letter to Revenue Canada about the very same thing 2 hrs ago. They are in the dark about the whole training bond issue. They kept referring me to the T220 form as well but its useless. They finally decided I would have to write them a letter explaining the whole thing.

I have a feeling they will be asking for their money back....

[Jeremy]

Throw it under professional and union dues. I asked a former employer to write-up a formal invoice stating something to that effect. Then I charged it to visa and collect the points :}

T220 won't help at all since companies aren't certified educational institutes etc. If that's the form I'm thinking of.

Best of luck.

[xsbank]

Are you paying back a company that you agreed to stay with for a certain period and you left early, or are you paying off a loan you borrowed to work, like for Voyageur?

If the former, I'll bet they will just lower your income and rebate the employment tax on the excess income.

If the latter, you will owe them money as you may have made $50 on interest.

[JAHinYYC]

From a tax perspective the whole training bond issue seems like a minefield.

Not to say that I wouldn't try to deduct the cost of bond were I in that situation, but if the expense of a bond is deductable from income - then the value of the bond that you don't pay (by working it off at a company) should then be counted as a taxable benefit.

The worst thing about taxable benefits is that you have to pay the taxes on them without ever seeing the cash.

Just one lawyer/pilot's opinion.

[tsgas]

Simple solution-Stay far away from Dirt Bag Operators that want suckers to pay for their training.

[Jeremy]

You might also be able to list it under moving expenses. If you weren't moving to a new job, the invoice wouldn't exist. It's like breaking your lease agreement with a landlord...sorta. :}

Be sure to have a paper trail if you get audited. That's a lot of cheddar to have to pay back if you're reassessed.

[VinceH]

From a tax perspective the whole training bond issue seems like a minefield.

Not to say that I wouldn't try to deduct the cost of bond were I in that situation, but if the expense of a bond is deductable from income - then the value of the bond that you don't pay (by working it off at a company) should then be counted as a taxable benefit.

The worst thing about taxable benefits is that you have to pay the taxes on them without ever seeing the cash.

Just one lawyer/pilot's opinion.

I just got off the phone with a CRA fella. He said the exact same thing. I think I'm understanding this, but I have a question.

Say Johnny works at a warehouse, and the boss sends him to get trained up on the new forklift that he must be able to operate in order to work there. The next day, Johnny quits. No "training monies" are exchanged, should Johnny then be claiming the value of his forklift school as a taxable benefit? Is Johnny going to have to pay taxes on the training he received so that he could hold this particular job?? This is making sense.

[VinceH]

Has anyone been successful in claiming this? If so, can you share the lovely accountant that massaged your Tax Claim in with the men and women at the CRA.

[Howitzer]

I've claimed bonds in the past. T2200E was the form to use. Didn't have a problem with it.

[wallypilot]

This subject is being discussed in another thread as well....see the thread below, and in my response, it explains most tax implications for the average pilot working for a smaller company. The bond will be entered under employment expenses, and you must have form T2200E signed by the employer, as well as a receipt or invoice indicating paid for the amount of the bond. the company is legally obligated to give this to you.

viewtopic.php?f=54&t=41875&p=402499&hil ... as#p402499

[benoit.baril]

Damn, I thought this thread was about training this guy!

Training-Bond-James-Bond

james-bond.jpg (14.88 KiB) Viewed 1244 times

Happy new year everybody!

[Rudder Bug]

AAAAAAAArrrrrrrrrrrggghhhhhhhhh Benoit!!

But happy new year!!!!!