Canadian Resident: Do I need to worry about taxes for a private collection sale? 0

[CrystalMr]

I live in Canada, and a friend of mine stumbled across a rather large comic book collection (approx 10,000 comics) all of which are major keys and what not. I think an easy estimate would approx be 100-150k in value.

 

He asked me to sell them for him. This is not done through a business or anything, its just myself, selling to locals and or other people in Canada. I am taking 20% for myself and the rest goes to my friend. Would I have to worry about CRA coming for the money? I am not sure how it works so I wanted to ask first.

[Ares]

Make invoices for every sale and document everything

 

[wilbil]

don't, before understanding law of agency. possibility you are responsible for collecting/recording/paying taxes. quebec a bit different, in application of law, but principle is same. why do i know? many steel fabrication representation dealings.  the commodity being comics will not be treated any differently.

i would not proceed on friendship basis. a clear understanding of the relationship, and a clear understanding of responsibility as interpreted by the law is the best course, before a commitment that  may have consequences for you that were not anticipated.

it is a business transaction. 

[aardvark88]

On 1/24/2021 at 9:46 AM, CrystalMr said:

I live in Canada, and a friend of mine stumbled across a rather large comic book collection (approx 10,000 comics) all of which are major keys and what not.

its just myself, selling to locals and or other people in Canada. I am taking 20% for myself and the rest goes to my friend.

Which city or province are you in? Different Covid restrictions in each province which affects when next summer/fall comicon or Expo is allowed in Canada for you to sell at.

[KPR Comics]

10,000 major keys is worth a hellofa lot more than $150K!

 

[Phicks]

If you sell the collection and make a profit, you need to pay taxes on capital gains.

[CrystalMr]

Thank you everyone. I have reached out to a lawyer at this point. We agreed that the business aspect of this needs to be cleared up. Consignment agreement has been created and I will be making invoices for every sale.

[lou_fine]

On 1/24/2021 at 9:46 AM, CrystalMr said:

I live in Canada, and a friend of mine stumbled across a rather large comic book collection (approx 10,000 comics) all of which are major keys and what not. I think an easy estimate would approx be 100-150k in value.

 

On 1/25/2021 at 11:41 AM, KPR Comics said:

10,000 major keys is worth a hellofa lot more than $150K!

Definitely in full agreement with you as that definitely sounds like an oxymoron to be.  

Maybe the original poster needs to give us an exampe of one of these major keys to see if we are even talking about the same thing here.  If it's really a stash of 10,000 comics with a total estimated value of only $100K to $150K, then the seller's going to really have a tough time sloughing out all of these books here.    

As I have said many times here before, in the type of market we have today, it's a whole lot easier to sell one $100,000 to $150,000 book, as opposed to trying to sell 10,000 books at a price point of $10 to $15 each.  

 

On 1/25/2021 at 2:31 PM, Phicks said:

If you sell the collection and make a profit, you need to pay taxes on capital gains.

Not sure if you are planning to get any of the books slabbed or not, but if you do and you are already incurring lawyer's fees to dispose of this huge collection, you just might need to worry more about capital losses as opposed to capital gains by the time you add up all of your time and expenses to dispose of the collection.    

Hopefully, your estimate as to the overall value of the entire collection is incorrect and it is actually worth a lot more than $100K to $150K.