"I wasn't aware that the CRA had mandated that eBay share Power Seller information to them."
That is irrelevant. All Canadians need to report their income, even small business income, on their annual tax return. It does not matter if the income is generated online through eBay or other venues or through brick and mortar stores or flea market stalls or whatever. Everyone must declare their net profit (sales minus cost of goods minus related expenses).
$300 to $400 to prepare the bookkeeping and the tax return is reasonable. Personally, based on your number of transactions last year, I would charge more than that.
On the other hand, you can do it yourself, using speadsheets (MS-Excel or similar programs). In different spreadsheets simply compile your sales, your purchases, your business related expenses.
Many years ago I prepared a sample Profit and Loss Statement that can be used for income tax purposes. Please take a look at this http://www.pierrelebel.com/lists/P&L-sample.htm
Canada Revenue Agency offers similar forms.
It all depends on the value you put on your time. $400.00 the first year may be a bargain as understanding all the tax rules pertaining small home based businesses is challenging.
Good Luck.
That is irrelevant. All Canadians need to report their income, even small business income, on their annual tax return. It does not matter if the income is generated online through eBay or other venues or through brick and mortar stores or flea market stalls or whatever. Everyone must declare their net profit (sales minus cost of goods minus related expenses).
$300 to $400 to prepare the bookkeeping and the tax return is reasonable. Personally, based on your number of transactions last year, I would charge more than that.
On the other hand, you can do it yourself, using speadsheets (MS-Excel or similar programs). In different spreadsheets simply compile your sales, your purchases, your business related expenses.
Many years ago I prepared a sample Profit and Loss Statement that can be used for income tax purposes. Please take a look at this http://www.pierrelebel.com/lists/P&L-sample.htm
Canada Revenue Agency offers similar forms.
It all depends on the value you put on your time. $400.00 the first year may be a bargain as understanding all the tax rules pertaining small home based businesses is challenging.
Good Luck.
"I forgot to ask if selling in USD will complex my tax return"
Canadian tax returns are filed in Canadian dollars. When doing the bookkeeping, you (or your accountant) simply convert the US$ amounts into Cdn$. It can be done transaction by transaction (based on the amount you received - or paid - when you withdrew US$ from PayPal and converted them into Cdn$) or, like many sellers, use the annual conversion value of the Canadian dollar as determined by the Bank of Canada http://www.bankofcanada.ca/pdf/nraa10.pdf
In 2008, it was US$1.00 = Cdn$ 1.0660
In 2009, it was US$1.00 = Cdn$ 1.1420
In 2010, it was US$1.00 = Cdn$ 1.0300
(actually, the 2010 rate was $1.02993904; rounding is OK).
Canadian tax returns are filed in Canadian dollars. When doing the bookkeeping, you (or your accountant) simply convert the US$ amounts into Cdn$. It can be done transaction by transaction (based on the amount you received - or paid - when you withdrew US$ from PayPal and converted them into Cdn$) or, like many sellers, use the annual conversion value of the Canadian dollar as determined by the Bank of Canada http://www.bankofcanada.ca/pdf/nraa10.pdf
In 2008, it was US$1.00 = Cdn$ 1.0660
In 2009, it was US$1.00 = Cdn$ 1.1420
In 2010, it was US$1.00 = Cdn$ 1.0300
(actually, the 2010 rate was $1.02993904; rounding is OK).
"I do not maintain other records than downloaded transaction history."
That is the point.
You do maintain sales/revenue records and your accountant simply put them together to generate a balance sheet, statement of income and prepare the tax return accordingly.
The op has not kept any record. The reconciliation of over 3,000 transactions would take some time. On that basis, $300 to $400 to do the bookkeeping and prepare tax return seems very reasonable.
That is the point.
You do maintain sales/revenue records and your accountant simply put them together to generate a balance sheet, statement of income and prepare the tax return accordingly.
The op has not kept any record. The reconciliation of over 3,000 transactions would take some time. On that basis, $300 to $400 to do the bookkeeping and prepare tax return seems very reasonable.
