Assistance In Reporting Domain Lease Revenue For Income Tax In Canada

[Skinny]

Hello fellow Canadians!

I'm trying to figure out reporting domain revenue for income tax purposes in Canada.

I understand that advice here doesn't replace a lawyer or an accountant, but since domaining isn't clear to those outside of our group I thought I'd ask here first.

This would be added to my personal tax as I haven't set up a separate business yet.

So I have two scenarios I'm dealing with this year:

1) A straight up sale (e.g. Bought for $100, sold for $500 = $400 in profit.)
I figure this is reported as a capital gain.

2) A domain lease to own (e.g. Bought for $100, sold for $200 with $50/yr = -$50)
I figured this is a capital loss of $50.

Therefore a total capital gain of this year of $400 - $50 = $350

I'm also confused what I would do for next year if I reported it like this?

Am I able to carry over my $50 loss over from this year to next year (and have a net gain of $0) for 2016.

Does this make sense or am I missing something?

Thanks everyone!

 

[Biggie]

don't know about Canada tax laws, but for USA the amounts are so low, that i wouldn't bother to report it, unless the buyer sent info to gov.

imo....

 

[Johnn]

Like Biggie said if the buyer did not file any paper with the government then it is consider cash business.
I would not be worry for anything under a million dollar.