Garage Sale, Kijiji and Taxes in Canada

[hypersafe2020]

To my understanding, if I sell an item in a garage sale or on Kijiji. When I receive the BTC I must record the amount and convert it to Canadian Dollars. And then when I sell the BTC to Canadian Dollars I must record the price of it in Canadian Dollars and record my gains/loss. Is this correct or am I wrong?

I am not a business accepting BTC. Will some bitcoin business tax regulation apply?

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[LeGaulois]

Since it's not a 'regular' income or an investment you have nothing to report. It's like if you sell your t-shirt, you don't report the sale.
I'm not Canadian by the way so I may be wrong but it's how it should work logically.

If it works differently what matter is the difference between the price you bought the item (in CAD) and the price you sell the BTC at the market rate  (in CAD)

[hypersafe2020]

If it works differently what matter is the difference between the price you bought the item (in CAD) and the price you sell the BTC at the market rate  (in CAD)

So if I receive 1 BTC and the price for 1 BTC is 10 Canadian Dollars. And I hold onto that 1 BTC until it is worth 20 Canadian dollars and then sell it in exchange for 20 Canadian dollars. How will I report this?

[LeGaulois]

The value it was when you got it doesn't matter. What matter is the day you sold it (so CA$ with your example)

- You got paid on 1st January 1BTC ($8000/BTC the day of the payment)
- You sell it on 31 December (1BTC/$10000) and transfer $10k to your bank account

You need to report $10k, not $8k

[hypersafe2020]

The value it was when you got it doesn't matter. What matter is the day you sold it (so CA$ with your example)

- You got paid on 1st January 1BTC ($8000/BTC the day of the payment)
- You sell it on 31 December (1BTC/$10000) and transfer $10k to your bank account

You need to report $10k, not $8k

This will be the case for selling something in a garage sale and if I was to receive BTC as a donation? Makes sense since the gains when I sell it will be 10k.

[Theb]

The value it was when you got it doesn't matter. What matter is the day you sold it (so CA$ with your example)

- You got paid on 1st January 1BTC ($8000/BTC the day of the payment)
- You sell it on 31 December (1BTC/$10000) and transfer $10k to your bank account

You need to report $10k, not $8k

Uhmm I don't think this is right or the correct way of explaining it. If hypersafe2020's question is still related to his OP then I think there are two taxable events that had happened in what he is asking.

Going with the same price as what hypersafe2020 has given...

The 1^st event: Buyer sending BTC (worth 10$) as payment for the seller's T-shirt product (worth 10$ in retail) - The revenue from the 10$ here is considered taxable under income tax
The 2^nd event: Seller decided to hold the BTC and it is now worth 20$ - The capital gains you have earned which is 10$ is taxable here under capital gains tax

It's really not the moment when you decided it to sell the Bitcoin you are holding because it is a separate event, trading crypto and doing a garage sale as a business should be treated separately here yes they are bot considered income to only one person but the thing is there are different kinds of tax while you are doing a business and while you are trading crypto different kinds of tax means you have different rates which might not coincide with one another.