Did you know this? Sellers who sell from home should read this!

[k1ooo-slr-sales]

I was reading stories on the ABC News website when I came across one that eBay sellers who sell from home should read.  It is not a story about an eBay seller, but the gist of the story would affect a lot of eBay sellers.

https://www.abc.net.au/news/2022-07-06/couple-denied-aami-home-insurance-claim-after-selling-eggs/10...

So, it seems that if you run a ‘business’ from home, and don’t declare that to your home insurance provider, you may be denied a claim if your house burns down!

I know that many “mum & dad” eBay sellers will say that they are not running a business, but a quick visit to the ATO website might be advisable (links in spoiler).

Spoiler

These two ATO pages are very important for a number of reasons.  One is that it will help sellers decided whether to declare their eBay activity at tax time, the other is that this might help in deciding whether an insurance company might deem your eBay activity is businesslike.

https://www.ato.gov.au/business/starting-your-own-business/before-you-get-started/are-you-in-busines...

https://www.ato.gov.au/Business/Starting-your-own-business/In-detail/Online-selling---hobby-or-busin...

We all know, or should know, that insurance companies don’t like to pay out to policy holders . . . especially in cases of total loss on things like building insurance.

I will admit that when I started selling cameras on eBay I thought of it as a hobby activity, I even talked about it with my tax accountant.  I was told my early selling was hobbylike, but after a while I started rethinking my eBay activity when I had some Vistaprint business cards made up and opened a NAB savings account for just my eBay buying and selling.  That’s why I stopped selling until I retired from work.  My selling activity falls well below the tax-free threshold, but could likely still be considered businesslike.

Some things that may indicate you are a business include:

- if you buy stuff with the intention to re-sell that on eBay, including buying from eBay, Vinnies, Op Shops, markets or garage sales.

- if you sell stuff for more than it cost you

- if your selling activity is organised and/or repetitive

- if you keep records of your selling activity, including breakdown of costs, postage, fees etc

- having a bank account for your selling activity

- if your activity is “businesslike”, including having a business card that you include with your sold items when shipped

So, if you think that there might just be that little chance that your eBay selling activity might be considered businesslike it might be worthwhile checking with your home insurance provider to ensure you are covered!

[k1ooo-slr-sales]

ABC are keeping this insurance flaw in the news

https://www.abc.net.au/news/2022-07-25/david-pocock-small-business-home-and-contents-insurance/10126...