vince0 Posted December 16, 2014 Report Share Posted December 16, 2014 I have had a very successful breeding program this fall, which has led to quite a few people coming to see the fishroom and purchase fish. I didn't really think about it, but I have the feeling that there are limits to the amount of private sales an individual can generate before they have to pay income tax or collect GST (I live in Alberta) I have also contemplated getting into the import business at some point, as the only way I can get some species of fish I want is to order a whole box (50-100 fish). When I discuss these ideas with my fiancée (BBA degree) she gets a concerned look on her face and advises me to incorporate myself. I don't really have a problem with it, but I'm just wondering if anybody is up on the laws regarding fish sales. Quote Link to comment Share on other sites More sharing options...
jvision Posted December 16, 2014 Report Share Posted December 16, 2014 I believe the GST threshold is $10,000 and the minimum income is around $11,00 in AB. Now, I'm pretty sure you're making more than $11K at your day job, so you're already paying income tax. Business taxation comes into play on income earned AFTER all expenses (ie food, power, water, etc). If you're still quite a bit ahead, then you'll probably want to talk to an accountant to get the full rules. Quote Link to comment Share on other sites More sharing options...
vince0 Posted December 16, 2014 Author Report Share Posted December 16, 2014 I need to get a power meter for my plugs... the cost of power alone will ensure I won't have to pay tax lol! Quote Link to comment Share on other sites More sharing options...
Traffic66 Posted December 16, 2014 Report Share Posted December 16, 2014 Last I looked into it, the threshold was at 35,000. That was only a year ago. Anything over that you would need a business license. As for GST, to collect all you need is a GST number which you can get for free from CRA. But keep in mind, then you will need to collect and pay the tax and then they will monitor your actions. Quote Link to comment Share on other sites More sharing options...
Jayba Posted December 16, 2014 Report Share Posted December 16, 2014 Two words.....cash only sales.....;-) Quote Link to comment Share on other sites More sharing options...
Ron Posted December 16, 2014 Report Share Posted December 16, 2014 I need to get a power meter for my plugs... the cost of power alone will ensure I won't have to pay tax lol! Not positive but I think you can only write off a percentage of the total bill when you are running a home business. Quote Link to comment Share on other sites More sharing options...
RD. Posted December 16, 2014 Report Share Posted December 16, 2014 The moment that one buys something with the intent to profit the "hobby" is no longer considered a hobby. So whether one wants to consider it a business, in the eyes of the govt it is a business and the profit is considered taxable income. Businesses that collect more than $30,000 in revenue per year are required to charge and remit HST/GST. http://taxtalk.hrblock.ca/working-for-yourself-tax/self-employed/do-i-need-to-charge-gsthst/ That has nothing to do with regards to if one is considered a business, or not. This is a good place to start before you make any decisions. http://www.cra-arc.gc.ca/smallbusiness/ That, or take Jay's advice & have this thread deleted. Quote Link to comment Share on other sites More sharing options...
Percilus Posted December 16, 2014 Report Share Posted December 16, 2014 (edited) Two words.....cash only sales.....;-) I second this and could go all political on you. I'll sum it up like this in my opinion there is no law that states the IRS or CRA (same people in my opinion) have any right to collect any taxes. Look it up. So if you can make some extra money doing something you love. That takes skill and dedication. My advice since it was asked for is have this thread deleted never speak of it again on-line or on your phone and go about "your" business. It's none of their business. Especially if you are already doing your due diligence with your main career. Never follow the rules unless you have to or they are moral in my opinion lest those who wrote them take advantage of you and your own. Edited December 16, 2014 by Percilus Quote Link to comment Share on other sites More sharing options...
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