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What you are missing here is they don't have to give one penny for them. They have NEVER given any money in the past for banned guns and most gun owners I know that have had banned guns in the past are shocked to see anything offered
SO some money is better than nothing. Plus they are all now used guns NIB or not so new retail pricing means nothing nor does it matter how one altered one from factory even if they spent 10,000 on it
They have to look at the average used

Also so far no talk of grandfathering them so what choice does one have especially those that they know have them. You can also bet the farm there will be a timeframe to get this cash and after that ZERO

Cheers
They aren't giving you or anyone else a cent for them, It's the tax payers $$$ that they are giving away.
 

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Discussion Starter · #22 · (Edited)
They aren't giving you or anyone else a cent for them, It's the tax payers $$$ that they are giving away.
And I pay/paid one hell of a lot of taxes in almost 50 years .( still do even retired ) Always have so yes getting some of MY money back is a good thing
Remember when I worked in the mines my taxes were more than my poor mrs made working for the year full time
So it's about time and I don't feel one bit guilty taking it
 

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NUTHUN FREE here in canadastan !! Don't matter how you slice, dice, mince or mash it...nuthin's free !
 

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Tax free they are personal property
Actually, in theory and the tax code in Canada, any profit made on personal use property is taxable. Though, surprise, surprise, losses are not deductible.
Having said that, I've never heard of anyone reporting such a thing and paying the tax! It would have to be something very, very valuable and easily traceable by CRA before anyone would report it IMO. Also, hard for CRA to prove and therefore not worth their trouble unless it was a high value easily traceable item.
 

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Discussion Starter · #26 · (Edited)
Actually, in theory and the tax code in Canada, any profit made on personal use property is taxable. Though, surprise, surprise, losses are not deductible.
Having said that, I've never heard of anyone reporting such a thing and paying the tax! It would have to be something very, very valuable and easily traceable by CRA before anyone would report it IMO. Also, hard for CRA to prove and therefore not worth their trouble unless it was a high value easily traceable item.
Understand
 

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Discussion Starter · #28 ·
Correct me if wrong but I also though this personnel item thing all changed and now if you make more than 1000 over the price you originally paid for it on resale capital gains has to ne claimed
 

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Correct me if wrong but I also though this personnel item thing all changed and now if you make more than 1000 over the price you originally paid for it on resale capital gains has to ne claimed
I've not 100% up on the rules either. You may well be right on that.

I don't think anyone selling a rifle, old car, painting, etcetera and making a few bucks on the deal has to be concerned. Unless you do it all the time, then its a business. Or, make a really big profit on something where there is a paper trail. Say like sending a collector's item going through an auction house for example. The problem CRA has is that there are literally thousands and thousands of transactions daily by individuals with virtually no paper trail what-so-ever and they have fewer auditors now than they did years ago.
 

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Discussion Starter · #30 · (Edited)
I've not 100% up on the rules either. You may well be right on that.

I don't think anyone selling a rifle, old car, painting, etcetera and making a few bucks on the deal has to be concerned. Unless you do it all the time, then its a business. Or, make a really big profit on something where there is a paper trail. Say like sending a collector's item going through an auction house for example. The problem CRA has is that there are literally thousands and thousands of transactions daily by individuals with virtually no paper trail what-so-ever and they have fewer auditors now than they did years ago.
Only reason I mentioned a 1000 since I had to claim when I sold my 70 chevelle per our accountant but again a car so a paper trail
But that was like 40 times more than I paid for the car in 1974 a a fair bit over the 1000 :)
Cheers

Personal-use property - Canada.ca
 

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Actually, in theory and the tax code in Canada, any profit made on personal use property is taxable. Though, surprise, surprise, losses are not deductible.
Having said that, I've never heard of anyone reporting such a thing and paying the tax! It would have to be something very, very valuable and easily traceable by CRA before anyone would report it IMO. Also, hard for CRA to prove and therefore not worth their trouble unless it was a high value easily traceable item.
Two things
1- gov has no idea how much a person paid for a lot of items.
2- Firearms are not LPP ( listed personal property)
So if I purchased something in 1980 CRA auditor would have no idea how much I paid. Sure they could make an educated guess but would their estimate stand up in tax court ? CRA does NOT want to go to court !!! So pretty hard for them to prove the proceeds of disposition were over $1000.
 

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Only reason I mentioned a 1000 since I had to claim when I sold my 70 chevelle per our accountant but again a car so a paper trail
But that was like 40 times more than I paid for the car in 1974 a a fair bit over the 1000 :)
Cheers

Personal-use property - Canada.ca
Ok see you googled it so now you understand ACB and proceeds of disposition. The $1000 is just a line drawn in the sand kind of. If you sold a car you would claim the money you put into it to restore plus labor because “ your mechanic” would give you receipts for his work😉😉.
When dealing with CRA it’s HOW you tell your story!
 

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Two things
1- gov has no idea how much a person paid for a lot of items.
2- Firearms are not LPP ( listed personal property)
So if I purchased something in 1980 CRA auditor would have no idea how much I paid. Sure they could make an educated guess but would their estimate stand up in tax court ? CRA does NOT want to go to court !!! So pretty hard for them to prove the proceeds of disposition were over $1000.
Should have been 3 things
3- always sell for CASH ONLY
 

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Ok see you googled it so now you understand ACB and proceeds of disposition. The $1000 is just a line drawn in the sand kind of. If you sold a car you would claim the money you put into it to restore plus labor because “ your mechanic” would give you receipts for his work😉😉.
When dealing with CRA it’s HOW you tell your story!
And what you have to back it up . CRA will take you to court only if the prize is big enough and they are really sure of a win .
 

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Discussion Starter · #35 · (Edited)
Ok see you googled it so now you understand ACB and proceeds of disposition. The $1000 is just a line drawn in the sand kind of. If you sold a car you would claim the money you put into it to restore plus labor because “ your mechanic” would give you receipts for his work😉😉.
When dealing with CRA it’s HOW you tell your story!
No I didnot understand and PAID IT LIKE I SAID WHEN I SOLD MY CHEVELLE and was told to by the accountant that does our income tax and no claiming my own work or parts that were bought some 40 years ago those receipts are long gone
When he says to do something I do it never question him since he knows what I can and cannot do tax wise. I am sure with your mrs having a business you do the same and use a good accountant

Only googled it today after Tony's response. Look up a GM documented 70sschevele ls5 with a m22 and see what they go for not 1200 ?? or 1400?? I forget in 74 I paid hard to not claim it especially when the car was appraised just prior and I had to give a true receipt to the new owner and it has a vin number Not what they sell for in the US as below but like I said almost 40 times what I paid it went for so a huge return IMO mint

 

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And what you have to back it up . CRA will take you to court only if the prize is big enough and they are really sure of a win .
Yes if the amount owing is BIG enough! And if their SURE they will win.
What I have to back it up - experience dealing with CRA and winning on three different occasions, on two of those occasions as soon as I said “ I WANT TO GO TO TAX COURT” they changed their tune and things got straightened out within two weeks, the other time was easier just a call to the head of problem resolution at the time and bingo - we accept your deductions. Plus Have a friend who had a large accounting firm ( sold it 4-5 yrs ago ) and another good friend who is one of the best tax lawyers in Nova Scotia. Not to mention an in law that just retired from CRA last year.
 

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No I didnot understand and PAID IT LIKE I SAID WHEN I SOLD MY CHEVELLE and was told to by the accountant that does our income tax and no claiming my own work or parts that were bought some 40 years ago those receipts are long gone
When he says to do something I do it never question him since he knows what I can and cannot do tax wise. I am sure with your mrs having a business you do the same and use a good accountant

Only googled it today after Tony's response. Look up a GM documented 70sschevele ls5 with a m22 and see what they go for not 1200 ?? or 1400?? I forget in 74 I paid hard to not claim it especially when the car was appraised just prior and I had to give a true receipt to the new owner and it has a vin number Not what they sell for in the US as below but like I said almost 40 times what I paid it went for so a huge return IMO and he has since spent another 53,000 on it per our conversation 2 weeks ago to make it mint

Mistake was not keeping receipts. As for the labor you can buy receipt books anywhere stationary is sold. Yes usually follow an accountants advice IF he/ she is fully knowledgeable.
Lot of accountants are simply that and don’t fully understand tax laws and are afraid of CRA.
CRA employees like to bully people, they are extremely ignorant and have swollen heads.
 

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Two things
1- gov has no idea how much a person paid for a lot of items.
2- Firearms are not LPP ( listed personal property)
So if I purchased something in 1980 CRA auditor would have no idea how much I paid. Sure they could make an educated guess but would their estimate stand up in tax court ? CRA does NOT want to go to court !!! So pretty hard for them to prove the proceeds of disposition were over $1000.
You're right. They could and, under certain circumstances would estimate your original cost, and calculate your gain from there. But, unless they can prove easily and exactly what the current selling price was, and the price was very, very large there simply isn't enough tax revenue in it for them to bother with 99.999% of the personal stuff that gets sold. Hell they're still trying to get their cut of tax on all the sales of land, camps and cottages that change hands every year let alone worry about a couple guns or the odd painting.
As to tax court, sadly if they decide to fight you in court, you lose. Maybe you win your case but lose in legal costs. The CRA has far deeper pockets than any ordinary citizen so you would be far better off to pay any assessed tax and move on if it came to that. But, as you point out, they don't really want to go to court over small stuff. No money in it.
 

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Discussion Starter · #39 · (Edited)
You're right. They could and, under certain circumstances would estimate your original cost, and calculate your gain from there. But, unless they can prove easily and exactly what the current selling price was, and the price was very, very large there simply isn't enough tax revenue in it for them to bother with 99.999% of the personal stuff that gets sold. Hell they're still trying to get their cut of tax on all the sales of land, camps and cottages that change hands every year let alone worry about a couple guns or the odd painting.
As to tax court, sadly if they decide to fight you in court, you lose. Maybe you win your case but lose in legal costs. The CRA has far deeper pockets than any ordinary citizen so you would be far better off to pay any assessed tax and move on if it came to that. But, as you point out, they don't really want to go to court over small stuff. No money in it.
Not to mention you are flagged for life with them so expect future issues
One best face it there is never a true win with the government and those that think there is is nothing more than a fool
They always will win one way or the other
Cheers
 

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Discussion Starter · #40 ·
Mistake was not keeping receipts. As for the labor you can buy receipt books anywhere stationary is sold. Yes usually follow an accountants advice IF he/ she is fully knowledgeable.
Lot of accountants are simply that and don’t fully understand tax laws and are afraid of CRA.
CRA employees like to bully people, they are extremely ignorant and have swollen heads.
Who keeps records of a car they drove and fixed in high school. Never would one think it would grow to be worth what it is today
Have never met an account that didnot understand tax laws or scared of CRA and I worked with and knew some of the best
My old PEI goose hunting buds were both CMA's one head of a hospital accounting group and one top bean counter of the NL ferry . They sure knew taxes
 
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