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 Replies: 8 / Views: 3,978 |
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Pillar of the Community
Canada
2495 Posts |
Many years ago, we were told that if you sell over $20,000 on ebay.ca (Canadian sellers), ebay sends all this information to our beloved CRA for income tax purposes. I was recently told by someone that this amount has been increased by the CRA to $30,000 a year. I have no solid information to tell me this is true. I've called ebay.ca and have called the CRA but with unsatisfactory results. Does anyone have any info on this matter? edited to add....for the record, even if I sell less than $20,000 a year on ebay, I record and disclose all my transactions to the CRA. Edited by doubleeagle59
01/30/2016 4:17 pm
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Pillar of the Community
Canada
1505 Posts |
It sounds like you are doing the right thing, I have always done it as well, but this year is the first I have read about CRA requirements. You are supposed to report any sale of coins above $1000 in a given year with the appropriate capital gains/loss. CRA specifically calls it "Listed Personal Property" (LPP). If I am understanding it correctly, individual coins are considered part of collection and the total sale of the collection in a given year is the value that matters (otherwise there is an obvious tax dodge).
This is probably something really important for collectors of NCLT (or whoever inherits the collection) and losses can be carried forward/backwards. If you paid $10,000 for your NCLT and it was sold for $5000, you would have a capital loss of $5000 for LPP, this could be used to offset any gain in other LPP areas such as art/books/stamps/etc... This is a good reason to keep track of your purchases as it could save you/your estate a lot of money in taxes when time comes to dispose of your collection.
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Pillar of the Community
Canada
1505 Posts |
To answer your question, I have no idea what ebay does/does not report, either way CRA has a specific section dedicated to collectibles like coins/stamp/art etc... so there is no question on whether it should be reported. If your total sales are less than $1000 and total cost of sales is less than $1000 your capital gain/loss is 0 ($1000 rule), but if your cost was above $1000, you could use the capital loss to offset a past/future LPP gain. |
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Pillar of the Community
 Canada
2495 Posts |
purelywasted...you're correct in your LPP facts. However, if you are ever audited and you have a fairly active 'hobby' record on ebay for selling AND buying, the CRA will definitely view this as a BUSINESS and all of your sales will be viewed as INCOME. The CRA will make their own determination of whether or not your activity is a hobby or a business. It will be dependent on the quantity of transactions you have (on AND off of ebay because they will have all your Paypal transactions too). From what I've been told, 9 times out of 10, they will determine it to be a business and you will have to add up all your sales and submit this as INCOME. |
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Pillar of the Community
Canada
1505 Posts |
Interesting, for many of us, it would probably be better to be classified as a business and report it under your personal income tax, it would open up the door to writing off various expenses like Charelton's, RCNA membership, travel to an auction/show, safe deposit box, etc... Depending on your sales volume, it would be pretty easy to get profit down to 0. Probably the biggest hurdle you would have is proving that you have a reasonable expectation of making a profit so that it is classified as a business and not a hobby. |
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Pillar of the Community
Canada
2495 Posts |
As I said before, the CRA will only acquire your Paypal and ebay activity information only if you have sold over $20,000.00 per year. What I'm asking is has this been changed to a minimum of $30,000.00 a year? |
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Rest in Peace
United States
17900 Posts |
One of the big reasons to always keep your inventory accurate and your costs of 'doing business' recorded.
Even if you're only buying now, there may come a day when you need to have your purchase invoices available.
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Pillar of the Community
 Canada
5394 Posts |
If you are selling on ebay or elsewhere and doing 30000 CAD a year in sales or more you not only well within the definition of running a business or carrying on a venture of any kind, you MUST also register for GST HST. In some provinces the dollar amount for Provincial sales tax collection is far less. For instance the threshold in BC is a mere 10000 in sales. The amount of Canadian coin sellers that say they are selling private collections and such and doing two to three thousand transactions through PayPal and ebay every year is a total joke and it is only a matter of time before the CRA and Provincial authorities catch up to them. Then there are the regulars at flea markets week after week dodging the tax authorities. No one enjoys collecting or remitting GST HST or filling out the quarterly paperwork but that is the way it works. |
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Pillar of the Community
Canada
2495 Posts |
PCoin....True.....if you sell over $30,000 a year, it is mandatory that you charge and submit HST to the gov't.
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Replies: 8 / Views: 3,978 |
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Posted 01/30/2016 5:22 pm
