Canada eBay/PayPal Year-End Taxes

[evicktd]

I lived in Canada for the latter part of last year--does ebay/PP CA follow the same 1099K rules they do here in US? If not, wouldn't running Canada accounts here in US be more profitable?

I still sell on my ebay CA account and everything has been dandy, getting deposits into my TD canada trust chequing for the past several months.

I'm looking for a new account and wonder if CA is the way to go (even though I'm selling in US).

[GreenBean]

Rules differ.

Canada still has tax demands.

[evicktd]

Thx gb. So treat it like any other stealth account and just dump it when the limitations occur? How would I be able to keep an account?

[rsot]

eB CA is not just a free-for-all - if you get limited, either provide docs or (as you said) you wait it out.

To keep an account, you would operate well and not go buck-wild on sales...spread over multiple accounts.

[GreenBean]

Originally Posted by evicktd

Thx gb. So treat it like any other stealth account and just dump it when the limitations occur? How would I be able to keep an account?

Always operate an account to avoid being limited, regardless of country,

Take what steps are needed to do so.

Think outside the box.

[evicktd]

Sound advice. That sounds like sell below limits on multiple accounts (under 200/20K) and prevent paypal from ever prompting to limit the account for any reason. And here I am just thinking inside the box.

[rsot]

And spreading sales between multiple accounts look at Sandy D and how she operates in her posts

[nearnu]

Originally Posted by rsot

And spreading sales between multiple accounts look at Sandy D and how she operates in her posts

I read online the tax limit for Canada tax notifications is 30k CAD. Is it actually 20k? Thank you

[rsot]

Originally Posted by nearnu

I read online the tax limit for Canada tax notifications is 30k CAD. Is it actually 20k? Thank you

Best to confirm with tax professional or visit Revenue Canada website.

[GreenBean]

Originally Posted by nearnu

I read online the tax limit for Canada tax notifications is 30k CAD. Is it actually 20k? Thank you

Normal rule is to refer users to the Tax site of the country in question.

None of us are tax professionals so we avoid giving inaccurate info.

Below is their site. Hope that helps.

Canada Revenue Agency

[nearnu]

Originally Posted by GreenBean

Normal rule is to refer users to the Tax site of the country in question.

None of us are tax professionals so we avoid giving inaccurate info.

Below is their site. Hope that helps.

Canada Revenue Agency

Thanks, I read on eb that they notify revenue Canada after your account hits 30k. But I was seeing posts about 20k. I do my own taxes and whatnot. I was just curious when pp or eb actually says "hey this bitch is making too much money". hahah. But its ok. I am going to spread accounts see how it goes.

[rsot]

Originally Posted by nearnu

Thanks, I read on eb that they notify revenue Canada after your account hits 30k. But I was seeing posts about 20k. I do my own taxes and whatnot. I was just curious when pp or eb actually says "hey this bitch is making too much money". hahah. But its ok. I am going to spread accounts see how it goes.

PP is known to limit accounts based on PROJECTED RATE as well

[nearnu]

Originally Posted by rsot

PP is known to limit accounts based on PROJECTED RATE as well

Do you know what the projected rate is? If you are consistently doing business gradually will these issues still come up?

[rsot]

Originally Posted by nearnu

Do you know what the projected rate is? If you are consistently doing business gradually will these issues still come up?

Projected rate...calculate...sell 5k in your first month...PP could see it as every month which would be 60k..bam! limitation...logical no?

[GreenBean]

Originally Posted by nearnu

Do you know what the projected rate is? If you are consistently doing business gradually will these issues still come up?

Potential is always there.

However, bear in mind it is paypal USA that does these limits on projected sales. They are trying to conform to the IRS demands there.

Not sure why that did not get explained for you.

This does make a difference for a Canadian seller. Your other point is to be aware of cross border trading.

[rsot]

This year moving forward...aim to spread sales over multiple accounts