Quote:
Originally Posted by Locke
Technically? Yes.
Realistically? No auditor can track what you sold at a garage sale, and the generated income would likely be considered immaterial and not over intial price.
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Generally true, but not always. I've had talks with CRA auditors and also with customs inspectors so know a little about how they work.
You may have a CRA auditor living down the street from you. If he notices that you have multiple garage sales every year and if he drops by and sees that the merchandise is more than might be expected from a regular garage sale and it's really good stuff, he can red flag you for a possible audit. If he sees you around the house all the time when you would otherwise be working, it might signal that you have a business of some kind.
I have known people who make this into a business. One person I know of would buy stuff at other garage sales and resell at his own. My bro-in-law would resell discarded retail merchandise (brand new) he took from garbage bins. It was a side business for him.
Sometimes all it takes is an alert CRA E'e who sees something suspicious.
Another tip: Be careful what vehicle you take to the ski hill this winter.
This is another one of their tactics. But you didn't hear it from me.
