05-19-2017 10:59 AM
Hello, I noticed on the E-bay listings there is a section to charge taxes, I am not a business, only selling personal items of mine do I need to charge people taxes ?
Thank you ,
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05-19-2017 11:03 AM
When selling used personal items, there is no need to collect and remit tax.
Only GST/HST registered sellers are allowed to collect and remit taxes.
05-19-2017 07:47 PM
Hi thank you for the information, I forgot to ask you if any of my e-bay profits need to be reported to the CRA if not a business.
05-19-2017 10:03 PM
If you sell used personal items, you obviously do not make a profit, do you?
As such there is nothing to report.
On the other hand if you were to sell a personal stamp or coin collection (for example) for much more than you paid, there could be a tax liability.
07-08-2017 12:32 AM
Hello, Thank you, you made alot of sense,
Thank you again, I really appreciate you getting back to me on this,
07-08-2017 02:30 PM
The question of taxation with respect to the sale of personal property does not occur when something is sold... the buyer is not charged a tax.
For the seller there is a question of a Capital gain.
There are times when something will be bought and then sold at a price higher than the purchase price.
If there is any question one should read what Canada Revenue Agency says in their Capital Gains document.... or contact an accountant familiar with taxation and capital gains
The question of Capital Gains all relates to something called Adjusted Cost Base... the value of an item at the time of the sale.
If the sale of an item of personal property has a value less than $1000 then there is no capital gain
One buys a piece of antique furniture for $500 and then after a period of time it is sells for $750.
There is no taxable capital gain.... because the sale was at a value less than $1000
One buys a piece of artwork for $500.
Then 20 years later the artist dies, and this artwork sells for $2500
In this situation the Adjusted Cost Base is deemed to be $1000.
Taxable capital gains on the artwork becomes $2500 minus the $1000, with $1500 listed as a capital gain. This capital gain is taxable
If the artwork was purchased for $1250 then the capital gain is $2500 minus $1250, the original cost of the artwork, and a capital gain of $1250, which is taxable.
Buy it for $5,000 and sell it for $3500, and it is a Capital loss of $1500. This capital loss can be carried forward, and can be used to reduce the capital gain on another item sold.
A capital loss can only be deducted from a capital gain, and in so doing the total for taxable capital gain is reduced
The question of Capital gains versus capital loss can be confusing, and may require the assistance of an accountant.
For the sale of personal property there is no question of taxation with respect to the buyer.
However, there is always a possibility of taxation as it relates to capital gains versus capital losses, for the seller.
Welcome to the reality of Taxation....