taxation

[can14]

When selling a number of guns.What do most people do with regard to taxation? Do you use capital gains because you have had it for a long time or do you put it into earnings?

 

[purple]

Unless you are a business and are selling out of your inventory taxation is a non-issue. There is no reason to give anything to the tax man when selling personal property.

 

[M14Doctor]

Unless you are a business and are selling out of your inventory taxation is a non-issue. There is no reason to give anything to the tax man when selling personal property.

agreed
you could sell evrything you own and still not have to pay tax as long as you are not doing so as a business. your personal property was already purchased with your taxable earnings......

 

[bordr69]

M14Doctor - It isnt as simple as that but I agree that I wouldnt worry about it with firearms. If it was art or a collection on the other hand it would be taxed as a capital gain even though you have purchased it with taxed earnings.

 

[sunray]

"...when selling personal property..." Except for vehicles and houses, nobody collects taxes on private sales of anything.

 

[can14]

Just a flash point, all guns are registered...so the trail is easy to follow for revenue canada.

 

[ki11ercane]

Just a flash point, all guns are registered...so the trail is easy to follow for revenue canada.

And the CRA building is in the same building as the CFP in Miramichi NB, just on a different floor.

 

[Onagoth]

Firearms are personal use property.

When personal use property is disposed of the, the cost is considered to be the actual cost or at least $1,000, and the proceeds are considered to be the actual proceeds or at least $1,000

Losses on personal use property are not deductible. Gains are taxable under the Income Tax Act (s.46)

Eg, you buy a firearm for $800 and sell it 20 years later for $3,000.

Your capital gain is $2,000 and your taxable capital gain is $1,000


Personal use property disposals in my experience are not heavily pursued by the CRA.....since most PUP losses value over time. The only possible way they could catch you is maybe on a net worth audit.

 

[Onagoth]

agreed
you could sell evrything you own and still not have to pay tax as long as you are not doing so as a business. your personal property was already purchased with your taxable earnings......

That's not true....

There are very few windfalls when it comes to taxation

 

[Etter]

So, who's actually going to tell CRA how much the guns sold for or how much you bought them for originally? If they were auctioned off GST &/or PST or HST, for you lucky ducks that are in the wrong provinces & have to deal with that, would have to be paid. Private sales, nobody cares.

 

[J996]

Selling your gun is no different than selling your old smelly couch (apart from registration of course). Now, lets move on with our lives.

 

[redneckalbertan]

So, who's actually going to tell CRA how much the guns sold for or how much you bought them for originally? If they were auctioned off GST &/or PST or HST, for you lucky ducks that are in the wrong provinces & have to deal with that, would have to be paid. Private sales, nobody cares.

That in it's self is wrong... As the items that are being auctioned are used they should not be taxed... however since the auction house is providing a service I can't say that the commission that the auction house charges shouldn't be taxed.

 

[Claven2]

The bottom line is revenue canada nor the CFC have no record of what you paid for the gun, nor are they privy to the terms of its sale or trade.

All they can say is you owned a gun and then disposed of it to another individual. For all they know, you lost money on the deal.