Would Lessons Count As A Service For Tax Purposes

Tax Expert: Are pianoforte lessons revenue enhancement deductible?

An Edmonton father constitute himself battling the Canada Revenue Agency this summer over whether his son'south pianoforte lessons should be eligible for the post-secondary tuition taxation credit

Sep 10, 2013 • September 10, 2013 • 2 minute read • Bring together the conversation

Daniel Acker/Bloomberg

September not merely brings the start of the school yr simply too heralds the kickoff of extra-curricular activities, from hockey to swimming, chess club to music lessons. The fees for these activities can add up apace, especially for parents with more than one child enrolled in a variety of programs.

It'south therefore understandable why an Edmonton male parent plant himself in Tax Courtroom in mid-July battling the Canada Revenue Agency over whether the costs of his son's piano lessons should be eligible for the post-secondary tuition tax credit, which he tried to claim on his tax returns for several years during the period from 2004 to 2009.

The evidence shows that for the tax years under review, the father attempted to merits between $2,200 and $2,900 spent on his son's piano lessons as a tuition credit transferred to him from his son.

Under the Income Revenue enhancement Act, to claim a credit for tuition fees, the tuition fees paid must be "in relation to a post secondary school level class taken at an educational activity institution that provided courses at this level."

At the hearing, the begetter stated that his son was taking individual piano lessons, typically lasting one hr per week, at his piano teacher's studio. His lessons were at the Grade 10 Pianoforte level as established by the Imperial Solarium of Music.

The two main bug were whether the pianoforte lessons were taken "at the post secondary school level" and whether the piano teacher's piano studio was "an educational institution for the purposes of… the act."

The CRA argued that an individual cannot exist considered to exist an educational establishment for the purpose of the tuition revenue enhancement credit. Furthermore, there was no show showing that the piano teacher'due south studio was, in fact, "a school of music or an education institution and was organized and operated as such."

The Approximate denied the credit, concluding: "I do non remember that 1 hour pianoforte lesson per calendar week is sufficient for the appellant's son to be considered as existence enrolled at a university, college or other educational establishment providing courses at a post secondary level…I doubt that Parliament ever intended to allow tuition credits in a state of affairs like this ane in relation to tuition fees paid to a piano teacher providing individual pianoforte lessons from home."

The silver lining for 2013 is that today, parents can become some tax relief for pianoforte lessons and a variety of other extra-curricular activities as a consequence of the children's arts tax credit, which was introduced federally for the 2011 tax twelvemonth.

You can get a federal non-refundable income tax credit for up to $500 of eligible expenses paid in a revenue enhancement twelvemonth for whatsoever child who is under 16 (or under 18 if the kid is eligible for the inability revenue enhancement credit) at the offset of the year. Federally, this credit is worth fifteen% up to the maximum of $75 (xv% 10 $500).

British Columbia, Manitoba, Saskatchewan, Ontario and the Yukon also provide provincial credits for children's arts activities.

Jamie.Golombek@cibc.com

Jamie Golombek is the managing director, tax & estate planning with CIBC Individual Wealth Management in Toronto.