Expert: Peter Messaline - 3/7/2009

Question
Hi Peter,

First off, I have your book "The Actor's survival kit" which I've found to be very helpful. Thank-You

I do have one question regarding taxes...
I was under the impression, that in order to make a claim for acting related expenses (tuition, books, agency mailings etc.) I would need to be earning an (acting) income.  So, I have kept all my receipts, and related paperwork in preparation for when I could actually claim, this leaves me wondering how far back I can claim?  I have heard both five years and seven years.  If you could clarify for me I would really appreciate it.

Thank you for your time,
Valerie

Answer
I'm delighted that you found The Actor's Survival Kit useful. It's always good to hear we've reached someone.

You don't have to make any money from being an actor to be able to claim your expenses in being an actor.
If you want to you can send in an Adjustment Request for each year to declare your expenses. You can go back as far as ten years.

Here's the scoop: http://tinyurl.com/cld46a

You can only claim expenses against your income in the year in which you paid out the money, so you'd be asking for a deduction from your other income for each of those years. Be aware that your expense receipts have to be sent in, so they have to be extremely kosher.

It might be worth filing for an adjustment if you paid tax in any year, after your refund. It could be also be worthwhile if you make around $5,000 or less and have a spouse who makes more than you. In that case, reducing your income will increase your partner's ability to claim extra credit for you.

One really good thing about claiming your expenses is that you can carry forward Business Use of Home expenses, so that you could end up with a bunch of unused deductions to take off your income when you get the US commercial.
See Business Use of Home here:
http://tinyurl.com/7pcynu
You qualify because your home is your principal place of business, so all the other rules needn't worry you.
You take the same fraction of all your accommodation expenses as the business space (office, practice, storage) is of the whole place. The Survival Kit talks about this, but here is the CRA version:

+++ The expenses should be apportioned between business and non-business use on a reasonable basis, such as, square metres of floor space used. However, the reasonable basis should also take into consideration the personal use, if any, of a work space that is an individual's principal place of business as described in 2 above.


Well done for diving in. Do follow up if you need to.