Accountant to setup ebay business in Melbourne

[vkny2010]

Hi All

I'm new to this eBay and like the idea of making extra income by selling here.

I've been selling here for few months only but see big potential so would like to setup my ebay store as a business and do things correctly that is report and pay any taxes on income I generate.

I know this is very general question, but I'm after some advice from experienced accountant or seller on how to go about reporting my income? do i setup a business or include my income in personal income etc?

Is there any Accountant in Melbourne who deals in eBay business setup etc?

Thank you

[lyndal1838]

At this stage you don't need to open a store or start a busines.    Just do as you are doing for now and declare any ebay income on your personal return.   Setting up and registering a business is an expense you don't need at this stage.

Selling on ebay is not as easy as people think so it would be better to try selling a few things from around the house before committing to buying a lot of stock....you may hate it once you get a few customers who want to rip you off.

If you want to sell on this account you will have to take your feedback off Private.

[vkny2010]

Thanks  lyndal1838

I understand what you mean by customer rip off.

But I would like to speak to someone with knowledge in eBay business income reporting. Say - if you make $20k profit in a year, how would you report it?

[clarry100]

I just keep records in a spreadsheet of ALL income (sales) and ALL business related expenses... stock, postage, fees yada yada.

Then at the end of the tax year take that info to my normal tax accountant and he turns it all into a tax return.

We are not yet in a position to have to register for GST (under $75K total sales) so its just straight forward income tax reporting at this stage.

If you also have a 9-5 job then of course the income will add onto that and you will have to pay tax on ALL of the profits.

If you don't then your accountant may be able to keep you under the tax free thresholds so you dont pay any tax or at least minimise any tax burden using all the tax legal avenues available.

There is no special formula about it really. Any registered tax accountant can handle it for you.

[davewil1964]

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@vkny2010 wrote:

Thanks  lyndal1838

I understand what you mean by customer rip off.

But I would like to speak to someone with knowledge in eBay business income reporting. Say - if you make $20k profit in a year, how would you report it?

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As income. Or if you made $1 in a year, as income. There are no thresholds for reporting income. The only variable is the amount of tax, if any, is payable.

Plus, if your TURNOVER (total income including postage, before expenses) is over $10k, eBay will mandatorily pass your sales information to the ATO.