What you need before you start
- Your total sales for the year of things you bought to resell: what buyers paid you, plus any shipping they paid you
- The cost of everything you bought to resell during the year
- The cost of the items you still had on January 1 and on December 31
- Your expenses, by type
The tracker's year-end summary adds these up for you and lays them out in the same order as the form.
Part 3: your sales
Put your total sales on amount 3A. Count the full price buyers paid, not the payout after fees: the fees go in Part 4 as expenses. If you're registered for GST/HST, the guide has you include the tax you collected here and then take it back out on the next line. The result carries to line 8000, adjusted gross sales, and then to line 8299, gross business income.
Part 3D: cost of goods sold
This is where what you paid for your stock goes. It isn't simply what you bought this year: items still on your shelf at the end of the year stay in inventory, and last year's unsold items count this year.
| Line | What goes there | Example |
|---|---|---|
| 8300 | Opening inventory: what you paid for items still unsold on January 1 | $1,120.00 |
| 8320 | Purchases during the year, net of returns and discounts | $1,203.50 |
| 8500 | Closing inventory: what you paid for items still unsold on December 31 | $1,100.00 |
| 8518 | Cost of goods sold: opening inventory plus purchases, minus closing inventory | $1,223.50 |
| 8519 | Gross profit: your sales minus cost of goods sold |
If you take items out of your stock for yourself, subtract what you paid for them from purchases on line 8320: that's a personal cost, not a business one. Stock that's lost or damaged leaves inventory, so what you paid for it ends up in cost of goods sold. Donating stock has its own rules, so check with the CRA or an accountant.
Your own personal things that you sold aren't business income, so leave them out of Part 3, and their cost out of Part 3D.
Part 4: expenses
| Expense | Line |
|---|---|
| Platform selling fees, plus the GST/HST on them if you aren't registered for GST/HST (registrants claim it back instead) | 9270 Other expenses (describe them as platform fees), or 8871 Management and administration fees. Use the same line every year. |
| Shipping labels you paid for | 9275 Delivery, freight and express |
| Mailers, tape, tags and other supplies | 8811 Office stationery and supplies |
| The business share of your cell phone and internet | 9220 Telephone and utilities |
| Vehicle costs for sourcing trips, with a log | 9281 Motor vehicle expenses |
| Promoted listings and other advertising | 8521 Advertising |
The CRA doesn't let you deduct the basic monthly rate of a home phone, only business long-distance calls on it. Line 9368 is the total of your expenses.
Line 9369: net income
Gross profit minus total expenses is line 9369, net income (loss) before adjustments. That's your reselling profit for the year. A few adjustments can follow, such as business use of your home, before the final amount goes on your income tax return.
Common mistakes
- Entering your payouts as sales, so fees are never deducted, or are deducted twice
- Forgetting opening inventory in your second year
- Claiming the cost of personal items you happened to sell
- Claiming the whole phone bill, rather than the business share
For the bigger picture, read taxes on reselling in Canada. If you live in Quebec, Revenu Québec has its own return and rules, and you contribute to the QPP rather than the CPP. This guide covers the federal side.
How this differs in the US
US resellers report on Schedule C instead, and pay self-employment tax once their net earnings reach $400. More in reselling in Canada vs the US.
Sources
General information, not tax advice.
Checked Oct 19, 2026 against: