CRA Income Tax Statement from eBay/Paypal

[ducretwangler]

Heh All

This is the first year I expect to receive an income tax CRA statement from Paypal.
Just wondering when I should be receiving it and how it is sent ie. email, regular mail and also what information it contains.

Thank you!

[pierrelebel]

"CRA is pretty clear that it wants receipts for all business transactions"

Not really.  CRA wants "records" of purchase, sale and expense transactions.

It is simply a matter of keeping track of purchases paid in cash by creating your own receipt of a piece of paper, nothing fancy: date, item(s) purchased, amount paid, location.

If the amount is substantial, it will be matched by an eventual CRA auditor to cash withdrawals from your bank account.

Anyone claiming cash purchases of $500 for example and not having evidence that the money was withdrawn from a bank account, may find the tax auditor less than friendly! 😞

[pierrelebel]

PS - I remember a few years ago purchasing the entire content of a storage unit, loaded with stamps.  The negotiated cost was $12,500 to be paid in cash.

I withdrew $12,500 from the bank and gave it to the seller.  Made my own receipt.

When I was audited, the auditor had no problem with the transaction.

[alpca_9419]

Great insight Pierre! Thanks for sharing your experiences. All the more reason to have a seperate business bank account to show cash withdrawals. After reading all the CRA tax laws my head is spinning!

[sebas_brand]

I'm on disability and a friend in the US may be helping me out with some money monthly sending me.  Of course I will have to pay back.  Do I need to report this money to CRA as income, because it's more like a gift than it is income.  I was in an automobile accident and my insurance company stopped giving me insurance benefits, my lawyer did nothing about it.  Just sends me to more assessments.  She's very rich and wants to help me out.

Can anyone explain how this works.  I'm afraid for her help because I don't want to report it.  Right now I'm borrowing big time from my 89 year old father, in remission of Cancer, and had a mild heart attack.  I stay home because of my herniated disc and I am caregiver to my father.

Regards,

JJ (female)
59 years

[recped]

If it's a gift it's not "income" and not taxable.

If you plan to pay it back it's not a gift it's a loan and not taxable.

[maggiebvintage2010]

If you are receiving a Disability Pension from Canada Pension, you do not need to report gifts or loans of money, and you should be aware of the policies on working/making income, which you can find on their website.  If you are receiving Provincial Disability Allowance, you need to report gifts of money and/or goods, and amounts over $6000.00 per year (in Ontario) will be clawed back from the amount you receive monthly, offering you a net benefit of $500.00 monthly.  Also, there may be reporting requirements regarding loans.  Check the website for your province. 

[dorcal1]

Thank you for this info, really helpfull!

[pierrelebel]

This is an old thread from 2013 and the original poster is long gone.

If you have a question about CRA and current Canadian taxes regulations as they apply to eBay sales, please start a new thread.

[jackets_and_gems]

Hi.i am an eBay Canada seller selling in USD. I am wondering from those of you in Canada do you do your exchange rate calculations on a monthly yearly or daily basis. Daily seems so technical. I am doing mine on the monthly noon average right now and I am hoping that will do. Please let me know if you have experience

[cumos55]

eBay is required to send a report of sales by a Canadian seller  to CRA is the seller has sales over $20,000

In the US it is Paypal that send the same to the IRS.....  and since Paypal does this in the US... then the total is for sales plus postage by a US seller.

.

[pjcdn2005]

---

@cumos55 wrote:

eBay is required to send a report of sales by a Canadian seller  to CRA is the seller has sales over $20,000

---

Are you sure?  A few years ago they were required to send to CRA the info for sellers who had been powersellers during specific years but I don't remember it being mentioned after that.  Perhaps I have just forgotten.....

If they were sending info wouldn't they have sent a copy to the seller?

[ricarmic]

I do not know if it is happening annually, but I do know someone who did have an issue and the only notification they got was from the CRA.

So PAYPAL doesn't notify the folks who's information has been forwarded to the CRA.

[cumos55]

The  $30,000    for collecting GST/HST.... is sales plus shipping.cost

The buyer pays a total for item sold plus shipping.... a seller's total income.... when an item is sold

[soaringeagle2]

I feel for you