Ebay sales on my 2013 CRA Personal Income Tax Return

[selling2u_buying4me]

Hi, I have a few questions regarding ebay sales on my 2013 income tax return.
I started selling some coins on ebay last year and made some money.

Since I am new to this I would appreciate some feedback from someone who has more experience with this kind of thing.

I added up the total sales (Gross Income) and calculated my actual profit (net income).
Now my main question is; where would I fill in the GROSS INCOME and the NET INCOME (from ebay sales) on my personal income tax return?

Secondly I am wondering if there is anything else to watch out for?

I should also note that I don't run a business.

Any feedback is really appreciated.

Thanks!

[maggiebvintage2010]

Money received for personal items sold is not considered taxable income.  However, certain items, such as jewellery, art, coins, etc., can incur a capital gains tax when sold.  You should consult an accountant to

[maggiebvintage2010]

Sorry - hit the send button by mistake.

An accountant can advise you whether and how you need to declare this.  Also, just because you don't consider yourself to be running a business, does not mean CRA agrees with you.

[pierrelebel]

"where would I fill in the GROSS INCOME and the NET INCOME (from ebay sales) on my personal income tax return?"

The Gross Revenue amount (includes sales and shipping/handling charges) is entered in Canadian dollar on line 162

The Net Profit (Sales minus "cost of goods" minus related expenses) is entered in Canadian dollars on line 135.  Only this amount is added to your other income (employment, pension, investment, etc...) to arrive to your "Total Income" and, eventually, your "taxable income".

To give you a more comprehensive answer, one would need to know a bit more about your actual business.  And yes, purchasing "stuff" for resale (on eBay or elsewhere) is considered a business.

Revenue generated from sales of "personal" used items is not considered "business" and need not be reported.

[rose-dee]

'maggieb' is right (on both points).  If you continue selling on a regular basis, CRA may consider it a business, even if it is personal "stuff", especially if the amount is significant.   If so, you'll need to complete Form T2125.

Many people start businesses by clearing out collections they no longer want or need, and then transition into full-scale selling.  You can refer to the CRA guide for businesses at this link (see especially the "Definitions" portion and Chapter 1 - General Information):

http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-13e.pdf

You can also call CRA's help line (1-800-267-2999), although the advice you get may be limited to your personal return.  Or consult an accountant to determine whether you need to be declaring your selling activities as a business, which is probably the smartest thing to do if you intend to continue selling. 

[maggiebvintage2010]

The definitive fact here is that the OP sold coins.  Coins, if personal property, are considered "listed personal property" and are treated for taxation purposes as described below:

"Listed personal property includes coins, stamps, jewellery, rare books, paintings or sculptures and similar works of art. Listed personal-property losses can be carried back for up to three years and forward for up to seven years, but they can only be applied against gains from the sale of similar property. "

Capital gains are treated differently than regular income when it comes to taxes.

We don't know the amount of $ involved, and what may be sold in the future.  The OP has some decisions to make, that may have future consequences, and an accountant probably has some valuable advice in this case.

[pjcdn2005]

The OP has been purchasing coins on ebay so my guess is that they are not selling coins from their personal collection but are buying coins to sell them. As I said..it's just a guess.

[selling2u_buying4me]

Thanks for everyone's feedback, I really appreciate it.