 What's up, everyone? Takedown here. Welcome back to another video. As you guys might know, I am a Canadian eBay seller and with that, I'd want to today talk to you about how to file your taxes if you are a Canadian eBay seller. Now, if you do sell in the United States or other countries on eBay, the taxes should be very similar. It just made me different formats. But the principles of what you can claim for your income and expenses should pretty much be the same. And that's what we're going to be talking about today. So for eBay, the one thing I want to mention is if you have PayPal connected to eBay and that's where your payments go through, that will definitely help you out whenever it comes to tax season because PayPal will keep track of everything for the whole calendar year that you do sell on eBay. Where if you let eBay handle the payments, it only goes back, I believe, 90 days. So it's best that you keep track of it and write everything down monthly so you don't forget anything that you sold on eBay and that will help you whenever it comes to claiming your taxes. Now, if you sell under a certain amount or less, you don't have to claim your taxes, but every area is different. So I recommend checking your area to see if you even need to claim your taxes if you earned under a certain amount. Of course, if you earned over that amount, you will have to claim the taxes for your area, but it's really simple to do. The simplest way to explain this is anything that you sell on eBay, whenever you get a payout, that counts as income. So you would total everything up and you would add that in the income section whenever you file your taxes. Now for expenses, everything from eBay fees counts as an expense and even what you purchase the product to resell for, that counts as an expense as well. And that's something that a lot of people, myself included, do not realize. So the best and simplest way that I can explain this, if you purchase something for $100 and then you do turn it and sell it on eBay for $200, your income for this item would be $200. But your expenses would be $100 because that's what it costs you plus your eBay fees, which would be about $26 for this item if you have the standard eBay fees. So your expenses would be $126 and your income for this item would be $200. You also have to keep in mind that you can claim other expenses as well. Now if you do have your own place, if you do have and store eBay items in certain rooms and that's where you do all of your eBay stuff for your business, you can claim all of that on your taxes as well. So in your taxes, you would go and you'd claim that you have two rooms in your house and you use them for your business only and you can file your taxes and use that as well. Along with anything like rent, you can do a certain percentage for rents, hydro, heat, or anything like that. You can claim that on your taxes for the business side of things. Now I know what you're thinking. If I do purchase things and sell it on eBay, why do I have to claim it on my taxes? Simply put, that's any online sites, eBay, YouTube, et cetera, et cetera, all of them are required. As of I believe 2018, I might be wrong on that, but they're required to share any Canadian users, any of the payouts that they received for the year. They have to report that to CRA. So if you are Canadian and you do sell things on eBay or even have a YouTube channel, the CRA already knows what you earned in the past calendar year because they've been reported. So it's best that you just go and file your taxes and claim all of that money. Now the one great thing with eBay, which is something that I'm considering to use in the future, and that is to have my eBay buyers pay a sales tax for the items I sell on eBay. Now that money will come to me by the end of the year. I will be paying that back to CRA whenever tax season does come so it doesn't come out of my pocket. Of course, it can be a struggle keeping track of not only what you sold on eBay, but also what you paid for everything and your eBay fees. You can easily find out and figure out how much your expenses were and it's best to go and claim all of that. I honestly didn't know that you can claim what the cost of the item was as an expense and even the eBay fees. I didn't know you can claim that as a business expense as well. And also another reason that CRA requires you to report any of this is because anybody making any kind of money online counts as you having an online business and you count as a small business. So it's best to report all of this anyways so you don't have a hassle or any troubles down the line. Now I know this might not be the most educational video whenever it comes to how to file taxes if you are an eBay seller, but at least I did mention some things and some key things that you want to keep in mind. So now if you are in the United States, I believe the principles of what you can claim as expenses should be the same. But here in Canada, I use simple tax so the forms are likely completely different than you guys have in the United States. I hope this video was helpful for most and I'll see you guys in the next video. Please take care. Peace.