Entrepreneurship & Small Business

Buying things wholesale for personal use

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  • May 16th, 2006 2:06 pm
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[OP]
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Apr 4, 2003
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Oakville

Buying things wholesale for personal use

Hi,

Does anyone know where the line is drawn by the (Provincial) government regarding tax-exempt purchases for resale but used personally.

It seems like a fuzzy area especially when buying stuff at Costco.

If I bought electronics equipment (let's say a PA system) at wholesale but I was using it as a 'demo', it's use could be written off.

Thanks,
5 replies
Sr. Member
Nov 18, 2001
785 posts
6 upvotes
Scarborough
gmark2000 wrote:Hi,

Does anyone know where the line is drawn by the (Provincial) government regarding tax-exempt purchases for resale but used personally.

It seems like a fuzzy area especially when buying stuff at Costco.

If I bought electronics equipment (let's say a PA system) at wholesale but I was using it as a 'demo', it's use could be written off.

Thanks,
When you sign up for the PST #, the brochure clearly states that if you do purchase something for personal use (ie non business) you have to pay for PST.

Costco always ask you, it's up to you to tell them if the stuff you are buying is for business. Because you are a business customer, you can demand different receits from costco. ie one for your personal stuff and another one for business stuff.

Demo is okay, since that is related to your business.

hp
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Heat Eval
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Apr 3, 2003
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Even if it's for your businesses use, you have to pay PST - ie pens and paper at Grand & Toy or the office computer.

Demo's are ok though. They're just stock that hasn't been sold.
hp wrote:When you sign up for the PST #, the brochure clearly states that if you do purchase something for personal use (ie non business) you have to pay for PST.

Costco always ask you, it's up to you to tell them if the stuff you are buying is for business. Because you are a business customer, you can demand different receits from costco. ie one for your personal stuff and another one for business stuff.

Demo is okay, since that is related to your business.

hp
[OP]
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Apr 4, 2003
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Oakville
Can demos be written off to zero? Sorta link shrinkage?
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You could probably pull that off, but strictly speaking, I don't think you're supposed to.
gmark2000 wrote:Can demos be written off to zero? Sorta link shrinkage?
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Mar 9, 2006
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If you purchased an item that was meant for resale but later decided to keep it for business/personal use, you are supposed to pay the PST. This can be done at the time you remit your PST. (If you keep it for personal use you can't claim the GST on it). If you can't prove that it is for business use you are not suppose to claim as a business expense or if you do, hope that you will never be audited. :) If it is for business use, you are suppose to depreciate it if it is over a certain amount (I think it's $200).

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