Writing off a bond

[TFTMB heavy]

I'm having a hard time with the CRA about this. Does anyone have any experience dealing with them for a bond. They want me to show it was included in my income. I have a letter from the employer explaining the bond, did you have a form or any other type of document for your taxes?

Cheers,

Martin

[wallypilot]

You need to get your employer to fill out form T2200. I did this, and never had an issue with the CRA. Note that the employer has to sign it.

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

hope this helps
wp

[MacTarmac]

Wally,

if you see your bond through ,and are still working for a company , do you know if you can you write this bond off?

or is it only in the case that you leave the company and have to pay cash out of your pocket?

example: i hire you with a 2 year prorated bond , you still work here but your 2 years is over,

i highly doubt you can but it sure would be nice.

thanks

[wallypilot]

No. The tax deduction is for expenses you incurred, and were not reimbursed for. Along with the T2200, your company has to give you a receipt for the "training". That is, they have to give you a receipt that says you paid for what was left on the bond. In the tax world, this is seen as paying for training that is required for your job, hence tax deductible.

Summary: The T2200 is completed by the employer to certify to the CRA that the "training" you paid for by paying out your bond is required to be employed. The receipt says the amount you paid for it.

[TFTMB heavy]

Thanks for the replies. I talked to someone at CRA, looks like it will work out. They didn't ask for the form, they wanted a letter from the employer or a new T4 with the expenses on it. Got a letter from the employer and CRA said OK.

Here's what happended for those that are curious, I was 5 months into a 24 month prorated no money upfront bond when I got a call for another job. I gave the employer one month notice, found a replacement and wrote a check. Never thought about the whole "will the bond stand up in court or could I skip on it and save myself a few bucks at the expense of my dignity and my word"

If things ever go South where I am now I can still go back to the old job or use them as a reference. That's worth a few bucks.

Cheers,

Martin

[teacher]

I had the same issue, signed a no cash 2 year pro rated bond. Got on with an airline and gave notice and said thanks for everything. I kept a copy of my actual bond that I signed stating the cost of the training and the term ( 2 years). I put it on my tax return and got some good cash back. I wasn't questioned about it though as I've already been audited twice due to my flight training costs which are as everybody knows, very high.

Like "TFTMB heavy" said, it's shitty to have to pay out but if the job is a step up than so be it. You leave with your integrity intact, a great reference and a place you can go to if things go sour where you are. I think 2 years is a little long though for a bond considering the fast paced nature of the industry and that outside aviation it's not uncommon to change jobs often.

[TurnandPull]

Any ideas on if your previous employer refuses to sign the T2200 but, for some reason, agreed to hand over the reciepts for the payout? Can my new employer sign it or should I find a lawyer?

[TFTMB heavy]

Send CRA a letter explaining the situation with copies of the receipts with your taxes or tax adjustment. They might contact the employer directly or ask you for more details at which time you call and ask to speak with a senior accounts review officer. They have the power to fix things. Keep it simple, the employer already looks bad for not signing the form but handed over the receipts. Good luck.