How much can I sell before my money is considered a wage and is taxable?

[martinbedard2099]

Hi,

Simple question, I'm cleaning the house and I have old items that are now worth quite a lot (undamaged rare video games).

I wanna sell them, and I expect that when I'm done I may be close to 10000$.

Will I have to pay taxe on this revenue, as I'm not doing it as a job, and those are my old items I resale?

I would appreciate a link to a proof of the yes/no answer.

[kawartha-ephemera · Accepted solution]

If you're selling personal property that tends to appreciate over time, like a coin collection or works of art there may be capital gains (or losses) that would be reportable, this is treated very differently than earned income. Whether there are any potential capital gains to report depends on what sort of property is being sold. Selling the furniture and emptying the garage is not likely to be a taxable event. Very valuable collections and rarities that may have appreciated over the years are the concern. A loss on one collection can be used to reduce gains on others.

High level info from the CRA

Personal-use property - Canada.ca

Listed personal property (LPP) - Canada.ca

[martinbedard2099]

Thanks!! From what I read with your link, I think I'll be good.

Also, unless I'm wrong, I think on ebay it says that under 10000$ per year, the government is not gonna check with ebay anyway?

[reallynicestamps]

If you are buying for resale, any income from eBay, even a single shiny penny, is taxable.

A few years back, Paypal was instructed to report any account that was taking in over $20,000 annually to CRA.

If you are making over $30,000 annually, you are required to register with your province to collect and remit sales taxes.

Whether or not you are buying for resale, or taking in any money at all  from eBay or any online selling, it is a Good Idea even a Best Practice to keep careful records of any purchases you make for your eBay selling, including bubblewrap, fees, and postage, as well as what money you take in from selling.

If only to prove that you are losing money on your hobby.

[cumos55]

Capital gains on personal property are taxable.

But.... only if the item sells for more than $1000.

If it was bought for $500, and sold for $1500, the taxable amount is the amount over $1000..... 

The taxable amount is $1500 minus $1000 equals $500.