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 ?

[pnc75]

The seller has to reach the threshold first. Lot of people jumping to conclusions

[etb321]

I agree, but the ATO is also realistic. They won't waste resources going after minnows. If you've just told a few porkies in the deductions area of your return they're likely to let it slide.  What they are looking for is significant undeclared income.  

[k1ooo-slr-sales]

---

@pnc75 wrote:

The seller has to reach the threshold first. Lot of people jumping to conclusions

---

I read the Opening Post as saying the OP was going to exceed the $10K threshold for mandatory reporting by eBay to the ATO.

[pnc75]

Fair enough. I didn't read that into it; just saw it a simple question. Cheers. 

[domino-710]

As it can be read - the main problem is with the OP - we don't know if neighbour/Mum is on benefits - could be self funded - we don't know how old the under 18 is - 16 year olds working - have tax taken - so would put in a return.

There is nothing stopping the OP - from purchasing from the neighbour/Mum - incomings and outgoings - same with under 18.

Costs - purchases - come off your income.

You pay tax on the profits.

There is no law against - from whom you buy.

You can earn around $11,000 without a pension being affected.

Disclaimer - I'm not an accountant.

[etb321]

So there are two separate issues:

The first is with the ATO, reporting (or not reporting) income. The threshold for ebay sales is $10k (including fees and postage). If you don't declare this income and the ATO believe it was deliberate then Heaven help you...

The second is with Centerlink. The threshold for earnings is $1. Yes, you can earn 11K(ish) but the cost of doing so  is having to submit CL profit and loss statements and submit a tax return. If you don't you will recieve a very scary Letter of Demand from CL. 

[domino-710]

Well - no.

There is the operative word ' income '.

There is a difference between a business & a hobby.

If - as I believe all assets - including - collections - have to be declared initially - the selling of those does not imply ' income '.

eBay only declares over $10,000 to sort out the businesses as opposed to the hobbies.

[etb321]

You are mixing up the ATO with CL.  

Walking down the street you happen upon a $100 note. Clearly not a regular event, no need to mention it to the ATO.  You should ; however, report  this as 'income' to CL. 

[domino-710]

Not if one were to walk around the corner and hand it in at the local Police Station.

Good grief.