Taxman goes browsing on eBay

[Locke]

Originally Posted by jolinar of malkshor

Does that work for a business aswell? Am I just confusing income with revenue?

Total Income (Revenue) - Expenses = Taxable Income

Originally Posted by mykalberta

I have a question, do you have to report income on items you have sold which are used?

Vis a vi garage sale, ebay etc.

MYK

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.

Where Ebay crosses their line is when people are selling cars and big ticket items, or generating a considerable amount of revenue per month where it is essentially a business.

Its the same thing as gambling in Canada. Gambling winnings are non-taxable, unless it is your primary source of income to the point where it is considered your 'line of work' and then you have to claim the earnings as business income. Losses arent counted as expenses however, sorry guys.

[stang]

Originally Posted by Maritime Q-Scout

I just bought something that's USPS, at least that's what they put as domestic, I never checked international. I'm not framiliar with all the American companies, I'm assuming that's different?

USPS = United states postal service = good

UPS= High brokerage fees!

[Bobblehead]

Originally Posted by mykalberta

I have a question, do you have to report income on items you have sold which are used?

Vis a vi garage sale, ebay etc.

MYK

Not generally, no.

Not unless you make a profit off of it. Other than collectibles, there aren't many used things worth more than the initial purchase price.

[Azure]

Originally Posted by stang

USPS = United states postal service = good

UPS= High brokerage fees!

Yep, agreed.

UPS is only good in the US. In fact, it is fabulous in the US.

[ken0042]

Originally Posted by stang

USPS = United states postal service = good

UPS= High brokerage fees!

Just to clarify- UPS is United Parcel Service.

Or to Canadianize it:
USPS= Canada Post
UPS= UPS.

[MoneyGuy]

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.

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.

[Locke]

Originally Posted by MoneyGuy

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.

Holy crap, seriously? These people need hobbies!

They kind of sound like one of my accounting profs, always working....

[mykalberta]

Originally Posted by Locke

Total Income (Revenue) - Expenses = Taxable Income



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.

Where Ebay crosses their line is when people are selling cars and big ticket items, or generating a considerable amount of revenue per month where it is essentially a business.

Its the same thing as gambling in Canada. Gambling winnings are non-taxable, unless it is your primary source of income to the point where it is considered your 'line of work' and then you have to claim the earnings as business income. Losses arent counted as expenses however, sorry guys.

So in other words its another form of double taxation since you purchased those items with post tax income and they didnt increase in vale.

Dame IRS and CRA.

MYK

[ken0042]

Originally Posted by mykalberta

So in other words its another form of double taxation since you purchased those items with post tax income and they didnt increase in vale.

Well, no. I buy an item for $1, and sell it for $3. I get taxed on the $2 I earned.

[Maritime Q-Scout]

Originally Posted by ken0042

Just to clarify- UPS is United Parcel Service.

Or to Canadianize it:
USPS= Canada Post
UPS= UPS.

That's what I assumed, but thought maybe UPS was a division of USPS, or that you drop the first S in the abreviation.

Regardless, I'm not too worried about my purchase from the States.