CRA & Cost of goods sold

[jules7970]

In 2020, i sold personal use items on Ebay that were accumlated over years / decades. Eg. clothes were sold as new or used. No longer have the receipts so can I enter an estimated amount of what I paid or current retail price? I paid more for than what I received.

I should clarify that I went over the $30k threshold - 2020 was an unusual year. I don't expect to have the same amount for future sales.

[fatdane]

Consult a tax professional, but if you were just selling your personal goods, you'r not running a business. If you were buying to resell then you are running a business. If you are not running a business then the only tax you would have to worry about would be capital gains and if you sold many lower value items capital gains would not apply. Years ago for postage stamps for collectors capital gains would not apply unless it was a single stamp selling for more than $500.  I don't know if that figure has been adjusted for inflation.

CRA may require you to collect and remit GST/HST. Best check with them and/or a tax pro familair with online sales.

[recped]

You can esitmate the value in this type of situation but be VERY realistic. Odds are you will be ok but if you are questioned the last thing you want is to be put in the situation where it's clear you are overstating your cost base value.

[jules7970]

so i have to report the sales as income?  i kept a list of prices associated with the items but i don't have the receipts. most of the prices can be found online. 

[fatdane]

If you are just selling personal things you do not have  to declare your sales as income. If you start buying things to sell on Ebay then you are operating a business and would have to declare your  NET income. Talk to a tax pro that is familiar with online sales, or call CRA. If you call CRA be prepared for a long wait on hold until you get a real person who may or may not be able to help you.

I don't know if it is possible to find Pierre Lebels postings about taxes. He was a very successful stamp dealer and Ebay vendor but had to stop for health reasons. His postings on taxes were excellent but I think it has been 4 years or more since he has posted.

[jules7970]

thanks!

[valuestore]

Ide be cautious with that personal use determination over 30k.  Example, I could buy 1000 boxes of cookies and  say I was going to eat them all but then I changed my mind and began selling other 998 boxes because well I ate 2.  Should seek tax advice on that. 

[lud-4367]

I think I read this information from here. It doesn't matter whether it's personal use or not, if you've made more than 30K, you have to report it because ebay sends the record to CRA. Also If you sold a single item that cost more than $1,000 - I assume without a shipping cost, you also have to report it because again, ebay sends the record to CRA.

[pjcdn2005]

As far as I know ebay doesn't send records to Revenue Canada although I imagine if they request them, ebay will send them.  Years ago they requested information on sellers that sold xx$ in the past year. I haven't heard of that happening since then.   However, if the seller gets audited, the seller will have to provide all of that info.

[lud-4367]

Does it apply to a single item sold for $1,000? Also, does that mean @valuestore won't need to file tax return?

[pjcdn2005]

Your post was the first one I've ever heard about eBay sending info to the CRA about a $1000 sale so I have my doubts about it.  But just because eBay may or may not report sales to the CRA has nothing to do with whether or not a seller has to file income tax.  We are still liable to list income that we've made and should keep our own records on that sort of information.

[chengda85]

we just have to declare any net profits as income right not the amount sold?