Selling for child and elderly neighbour

[mofy11]

Hi .. just wondering how eBay works if you sell items for your child ( under age of 18 ) and mother ( aged 88 and not good on computers ..lol ) and give the funds from the sale to them how to prove if the combination of mine and theirs then exceeds to ATO amount for private selling which I think is $10K a year . I have sold some valuable items for both of them which just reflects in my total yearly sales . Has anyone been in a similar situation ?

[k1ooo-slr-sales · Accepted solution]

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@mofy11 wrote:

Hi .. just wondering how eBay works if you sell items for your child ( under age of 18 ) and mother ( aged 88 and not good on computers ..lol ) and give the funds from the sale to them how to prove if the combination of mine and theirs then exceeds to ATO amount for private selling which I think is $10K a year . I have sold some valuable items for both of them which just reflects in my total yearly sales . Has anyone been in a similar situation ?

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how eBay works is that if you sell for them on your eBay account you are responsible for the listings and sales and all that goes with that.

Better to sit with your mum and help her set up her own eBay account and managed payments and just run that for her.  In effect, you become their unpaid manager of their account, with no links that would spark interest from the ATO.

As for under 18 daughter, wait till she is 18 and do the same.

If you do intend to sell their stuff on your account, you should seek professional advice or ATO advice.

Disclaimer: I have no formal training  in tax matters.  Any advice given above should not be considered as professional advice.  I accept no responsibility if what I have written is wrong.

[k1ooo-slr-sales]

further to my post above, while extending my disclaimer to all things Centrelink related, you may need to discuss selling your mum's items with Centrelink as money received from that selling may impact her Centrelink entitlements, even if the items sold are long-held personal items.

It can be a minefield.

[k1ooo-slr-sales]

have a read of this thread 👇.  Even though it is 10 years old, the information posted by members who no longer post here is good advice/information.

I'm talking specifically of lyndal1838, digital*ghost, and thecatspjs, they know about these things.

https://community.ebay.com.au/t5/Selling/Do-you-realise-you-have-to-report-your-ebay-earnings-to/td-...

Do not post on that thread, read only

[sugar249]

Personally I would ignore any information provided in a 10 year old thread.  The world has moved on since than.   If you are concerned about centerlink,  ask centrelink,   not 10 year old advice.  Even some of the links provided within that thread no longer exist.

[domino-710]

This question should be asked of the ATO - to whom Centrelink report.

[etb321]

Should you declare the income or not?

Declare it and pay a bit more tax  The cost is just part and parcel of caring for an aged loved one and a child.

Do not, under any circumstance, open an ebay or any other online selling account for your mum. Failure to meet centerlink's income reporting requirements will put her entire benefit at risk.

[sandypebbles]

Is it your elderly neighbour as per your heading. or your elderly mum as per your post (unless your mum is your neighbour)

Honestly, you need expert advise

And you needed to get it before you sold for them

I am sure you do not want elderly anyone having their benefits cut off

[p9games]

Ebay sales are reported to the ATO.  And the ATO will assume the revenue belongs to the person whose name is on the account.

I really can't imagine ATO accepting that the revenue should be divided up between a gaggle of people.  

"Uhm,  this $50k belongs to my elderly friend.  This $20k is my neighbour, this $15k is my uncle Bob and this $10k is Uncle Bob's dog"  

I'm no expert but I imagine this would be seen by the ATO as an attempt at strategically splitting income between a number of parties to maximum advantage / minimum disadvantage.

Unless you have traded as a company or trust with clear owners and shareholders, if it's your account then the sales are yours, as a sole trader.  You may choose to disburse monies to your elderly friend, your neighbour, Uncle bob and his dog, but you'll be on the hook for any tax liabilities and any negative impact to entitlements.

These are really topics to explore BEFORE you embark on your ebay sales career.

[domino-710]

The ATO - does not ' assume '.

The rest...........................................