Where to declare income from eBay sales on tax return?

[dh_5346]

Hi,

I am a small casual seller usually only listing when there is eBay promotions. I do not have an ABN or officially registered as a business - I don’t really plan to/want to as it is not large scale and heard it’s not needed. My question is, is where would I declare income (profit) from eBay sales on a tax return? Hopefully someone has an idea,

Thanks in advance

[padi*0409]

I would suggest that, as far as I know, since there are no members here qualified to give you tax advice your best move would be to engage an accountant to sort out your tax obligations. Their fees are tax-deductable in the following financial year, so you will get some of that outlay back.

[jellybirddesigns]

The ATO has excellent info on the difference between conducting a hobby or a business.

https://business.gov.au/planning/new-businesses/difference-between-a-business-and-a-hobby

Personally, my store is run for profit, but I do not have an ABN and I do not have a registered business name as they have never been needed on Ebay. 

[dh_5346]

Hi Jellybird, you seem to be in a similar situation to me. So without an ABN etc, where in a tax return do you record your eBay sales profit? Is there a seperate section for it? Really hoping you can help,

Thankyou

[whoisbiggles]

FWIW - I list it under "additional income" with the description of Stuff sold on eBay and just the net profit figure.

I have no ABN not a registered business for GST etcetera or tax expertise

[jellybirddesigns]

I specifically handmake and purchase items with the intention of making a profit, so I record everything in a spreadsheet. I can claim all my expenses, including car mileage, pro-rata utilities, supplies etc.

At the end of the financial year I give the spreadsheet to my accountant who does all the relevant calculations.

You should check with an accountant as everyones situation will vary depending on their reporting committments and income streams.

[jellybirddesigns]

Looking at your listings - it appears that you are selling like a "business". You have new items which you are selling for profit, not old stuff lying around your home. I don't think you would qualify as a hobby seller.

[dh_5346]

Thanks biggles, this seems like a good solution. I will look out for the ‘additional income’ section next tax return.

[dh_5346]

So it is possible to claim expenses without an ABN?  Would things like packaging material be accepted? 

[eol-products]

Some businesses will not deal with other businesses that do not have an ABN if you want wholesale prices. If you buy from retail shops for supplies and sell less than $75000 in a 12 month period then you can get by without one.