Thinking about making some extra cash by reselling those hot Blue Jays tickets? The Canada Revenue Agency is watching, and they're cracking down on unreported income from ticket resales in what could be a major shift in enforcement strategy.
What the CRA Considers Taxable
According to tax experts, the CRA views any profit made from reselling event tickets—including Blue Jays games, concerts, and other popular events—as fully taxable income. This applies whether you're an occasional seller or operating as a business.
Key points every ticket reseller needs to know:
- All profits from ticket resales must be reported as income
- The CRA can access data from online marketplaces and ticket platforms
- Failure to report could result in audits, penalties, and interest charges
- Even occasional sellers aren't exempt from reporting requirements
How the CRA is Tracking Resellers
The tax agency has significantly enhanced its digital surveillance capabilities in recent years. They now have the authority to request data from popular resale platforms like StubHub, Ticketmaster, and even peer-to-peer marketplaces.
"The CRA has become much more sophisticated in tracking online transactions," explains a Toronto-based tax specialist. "They're specifically looking at high-volume sellers and significant profits that aren't being reported."
Protecting Yourself from Tax Trouble
If you've been reselling tickets, tax professionals recommend taking these steps immediately:
- Keep detailed records of all ticket purchases and sales
- Document your expenses related to ticket reselling
- Report all income on your tax return, even if you don't receive a T4A
- Consider whether you're operating as a business or making occasional sales
- Consult with a tax professional if you're unsure about your obligations
The Bigger Picture: CRA's Digital Economy Focus
This increased scrutiny on ticket resales is part of the CRA's broader effort to capture tax revenue from the growing digital and gig economies. As more transactions move online, the agency is adapting its enforcement strategies to ensure compliance.
With baseball season heating up and demand for Blue Jays tickets expected to surge, the timing of this enforcement focus couldn't be more relevant for Canadian sports fans looking to capitalize on the secondary market.
