Taxation And Tax Refund

Be careful you are either one or the other a business or a hobbyist. A reasonable expectation of profit can be construed in many ways. Under US tax code you must make a profit 3 out of 5 years. I am sure the CRA would look closely at a similar situation. If you buy all of your coins in a non HST province or out of the country the tax hit is less for sure. Paying cash at coin or collectible shows also works. However as a business We want invoices and receipts for absolutely everything. Neat thing for us we export over 75 percent of our sales and buy mostly in Canada.

One thing to consider is that if you are engaged in the businees of buying and selling for profit, everything you sell is on account of income, and any profits you make are fully taxed.

If you are a collector, and not in business, your collection is personal use capital property and listed personal property. This means each of your items that is bought for less than $1,000 is deemed to have an adjusted cost base of $1,000, and each item that you sell for less than $1,000 is deemed to have proceeds of $1,000. In other words, everything you sell for less than $1,000 per item is tax-free. If you had an item you bought for $500 and sold for $1,500, it would be deemed to have a cost of $1,000, so you would have a capital gain of $500, of which 50% ($250) would be the taxable portion.

The $1,000 rule is very useful for non-business collectors, and shouldn't be given up lightly.

purelywasted,when you sell the coins,you,not the buyer will be paying the tax.
You will miss out on 12% for every coin you sell.