Someone gifted me a boat and provided me with the original receipt that shows what they paid for it. I can see they paid $47000 + HST (=$53110).
If I sold the boat to a friend for $50000, do I need to charge my friend an additional 13% HST? Meaning they pay me $56500? Or does my friend just pay me $50000, and then my friend separately pays the government $6500?
And did I just experience a capital gain of $3k (=$50000-$47000)? Which means I need to pay capital gains tax?