Selling Stuff, Kijiji, and Taxes in Canada

So, as I get it, if I sell something at a garage sale or list it on Kijiji, when I get paid in BTC, I need to note that amount and change it into Canadian Dollars. Then, when I eventually sell that BTC for CAD, I gotta record the value in Canadian Dollars and track any gains or losses. Is that how it works, or am I totally off? I'm not running a business that accepts BTC, so are there any bitcoin tax rules that would still apply to me?

Since it's not a 'regular' income or an investment you have nothing to report. It's like if you sell your t-shirt, you don't report the sale. I'm not Canadian by the way so I may be wrong but it's how it should work logically. If it works differently what matter is the difference between the price you bought the item (in CAD) and the price you sell the BTC at the market rate  (in CAD)

So if I receive 1 BTC and the price for 1 BTC is 10 Canadian Dollars. And I hold onto that 1 BTC until it is worth 20 Canadian dollars and then sell it in exchange for 20 Canadian dollars. How will I report this?

The value it was when you got it doesn't matter. What matter is the day you sold it (so CA$ with your example) - You got paid on 1st January 1BTC ($8000/BTC the day of the payment) - You sell it on 31 December (1BTC/$10000) and transfer $10k to your bank account You need to report $10k, not $8k

This will be the case for selling something in a garage sale and if I was to receive BTC as a donation? Makes sense since the gains when I sell it will be 10k.

Uhmm I don't think this is right or the correct way of explaining it. If hypersafe2020's question is still related to his OP then I think there are two taxable events that had happened in what he is asking. Going with the same price as what hypersafe2020 has given... The 1st event: Buyer sending BTC (worth 10$) as payment for the seller's T-shirt product (worth 10$ in retail) - The revenue from the 10$ here is considered taxable under income tax The 2nd event: Seller decided to hold the BTC and it is now worth 20$ - The capital gains you have earned which is 10$ is taxable here under capital gains tax It's really not the moment when you decided it to sell the Bitcoin you are holding because it is a separate event, trading crypto and doing a garage sale as a business should be treated separately here yes they are bot considered income to only one person but the thing is there are different kinds of tax while you are doing a business and while you are trading crypto different kinds of tax means you have different rates which might not coincide with one another.