topic Re: tax for 2 years in Selling

tax for 2 years

baby*toddler*child — Sat, 25 May 2013 04:44:08 GMT

I have just been advised that I need to do tax for 2 years and have NO idea what to do.

Can anyone tell me where to start ? and if you can do a print out of all sales that let you know which ones where sold to overseas customers ?

I have bags of receipts, I used paypal and bank deposit also purchased stock from both local and overseas.

please any help would be greatly apprieciated.

sue

Re: tax for 2 years

punch*drunk — Sat, 25 May 2013 05:00:19 GMT

You can start by downloading and pprinting all of your ebay invoices as far back as you can get them. Mine go back to Nov 2011.

You can find them by clicking on the acount tab. They are all in a drop down menu on the top right hand side that says "select invoice"

Re: tax for 2 years

*sparklz* — Sat, 25 May 2013 05:00:30 GMT

Go through all your invoices for the last 2 years and print them out .(month by month).

Go to paypal and get print outs of sales summary for the last 2 years (month by month).

Subscribe now for sales report plus to help you with records from now on and there you can see your sales, ebay fees, paypal fees etc.

Keep ALL receipts from post office and if you use click and send print and keep all transaction summaries.

Keep receipts for purcjases and anything that proves any expenses you have had related to ebay that can be used to claim with.

Lots of work to do.

Re: tax for 2 years

the-kazbar — Sat, 25 May 2013 05:13:54 GMT

I suggest an accountant.

Your turnover will probably be over $75k so you have the whole GST palaver to deal with as well

Re: tax for 2 years

bsal6160 — Sat, 25 May 2013 05:38:20 GMT

WHat....you mean you haven't been paying your taxes for the last two years...shame on you.

Re: tax for 2 years

lyndal1838 — Sat, 25 May 2013 06:12:39 GMT

And if you owe GST be prepared for penalties of up to 75%.

Re: tax for 2 years

kustomizer99 — Sat, 25 May 2013 07:19:38 GMT

Just wondering -- my sales have never been big enough to 'worry' about - -but if you are at the point of running a viable business on eBay and are paying tax, can you claim all eBay and PayPal fees, as well as postage and packing materials?? I have several friends in the ATO but none of them know anything about this.

Re: tax for 2 years

bsal6160 — Sat, 25 May 2013 07:33:22 GMT

I very much you could claim postage and packaging as this is something the buyer pays for so you are not out of pocket.

Re: tax for 2 years

lyndal1838 — Sat, 25 May 2013 07:43:23 GMT

Yes you can claim postage and packaging.

They are both income and claimable expenses.

Kustom, you should be declaring all income from ebay. After deductions you may not be paying any tax on that income but if the ATO finds out that you have undeclared income you could cop some very severe penalties.

Re: tax for 2 years

lyndal1838 — Sat, 25 May 2013 07:46:36 GMT

Kustom, are you serious that nearly 9000 feedback as a seller is not enough to "worry" about?

Good luck with convincing the ATO of that when they catch up with you.

Re: tax for 2 years

davewil1964 — Sat, 25 May 2013 07:58:24 GMT

You can also claim for your internet, car expenses for stock purchase/posting, a proportion of rent/mortgage and electricity if you have a dedicated office, computer depreciation, stationery, relevant phone calls....

Get an accountant. Quickly.

Re: tax for 2 years

motherbear2003 — Sat, 25 May 2013 09:09:51 GMT

Go straight to an Accountant, do not pass go and do not collect $200; explain the situation you're in and he/she will advise you:-)

Re: tax for 2 years

wishuponastarcelebrationsandgifts — Sat, 25 May 2013 10:28:52 GMT

Go straight to an Accountant, do not pass go and do not collect $200; explain the situation you're in and he/she will advise you:-)

Great advice motherbear. While you are getting your tax done your accountant can give you some advice on how best to maintain records in future that suit your specific needs and preferences.

As others have suggested get together statements from ebay, paypal and your bank account and get all your receipts together for anything you can claim such as postage.

To save a few dollars total up what you can eg. total paid for postage, ebay fees, Paypal fees, total sales etc. If you get your accountant to do all of this it may prove to be very costly.

Re: tax for 2 years

oz_electronics_inc — Sat, 25 May 2013 10:34:39 GMT

I suggest using the file download centre to get the last 13 invoices sales in an excel format.

and from now on automate a monthly download in the file download centre So you don't get caught out again.

you could write to eBay and ask them for the older records as that is what the ato does to get your records.

it's a real drag having to do so, but all businesses need to keep records for 5 years.

Re: tax for 2 years

putney32 — Sat, 25 May 2013 12:20:29 GMT

You can also claim for your internet, car expenses for stock purchase/posting, a proportion of rent/mortgage and electricity if you have a dedicated office, computer depreciation, stationery, relevant phone calls....

Get an accountant. Quickly.

only problem with claiming part of your 'home' as 'business' i.e. mortgage repayment ~~, when you sell the house, that part of the ''home'' is part of 'business premises' sold, and liable for Capital Gains Tax.

years ago my accountant advised against claiming any part of the family home as a business premises.

Re: tax for 2 years

love-your-smile — Sat, 25 May 2013 12:33:19 GMT

Hi Sue.. just wondering did ATO contact you directly about you needing to file? Or you just doing on your own accord?

Re: tax for 2 years

phorum_junkie* — Sat, 25 May 2013 13:17:20 GMT

Every year it is the same, people come to the boards in a panic because they have suddenly come to the notice of the ATO who incidentally also pass the info to Centrelink.

For the last couple of years ebay have passed on to the ATO the details of all sellers with a turnover (not profit, and it includes unpaid for items) of $20,000 and over.

I have not heard of any change yet this year but until the figure is announced it could be even lower this year.

Just because the ATO have your details of ebay sales does not mean they will contact you and if you have sold a few high priced items that were personal possessions you have nothing to worry about but should you not declare any earnings from items you have purchased for re sale in your tax returns and the ATO contact you later you will be in more trouble, at the very least you should have all your ducks in a row so you have the information to hand should you need it.

Re: tax for 2 years

davewil1964 — Sat, 25 May 2013 13:34:42 GMT

only problem with claiming part of your 'home' as 'business' i.e. mortgage repayment ~~, when you sell the house, that part of the ''home'' is part of 'business premises' sold, and liable for Capital Gains Tax.

years ago my accountant advised against claiming any part of the family home as a business premises.

I rent

Re: tax for 2 years

phorum_junkie* — Sat, 25 May 2013 16:31:47 GMT

I rent

OH claims I am a squatter but says he can't chuck me out coz nobody else will cook his meals ;-):^O

Re: tax for 2 years

putney32 — Sat, 25 May 2013 21:39:12 GMT

I rent

OH claims I am a squatter but says he can't chuck me out coz nobody else will cook his meals ;-):^O

oh Im sure that's not true PJ, surely foxette would step up and cook a few meals for poor Fred?

]:)