Meaning, I heard that once you earn over a certain amount, eBay automatically reports your income to the ATO.
That's fine, but I can't find anywhere that specifies what the amount is. I thought it was $10,000 but then I heard it was $20,000.
Also, do they report your gross earnings, before things like postage costs and fees are deducted? I assume they do and then you're responsible for declaring the postage, stock costs and fees as tax deductions?
Oh! So I CAN declare partially my internet and computer and electricity with no CGT?? I don't actually have a mortgage (own outright).
Uber would attract ATO attention? Why might that be if taxis (more expensive) or car costs wouldn't? I actually only use Uber to get to and from 1 of the 5 Salvos shops I go to, every 6-8 weeks or so. Average cost of the each Uber would be $10.
As I said, Uber (or taxi or car) could eat up your profits. If your expenses match or exceed your income, the ATO could well look askance.
You couldn't claim against your house anyway, as you aren't paying anything for it. There would be nothing to deduct against.
Oh yeah, the disclaimers.
Many businesses run at a loss during the establishment phase. The ATO have in the past acknowledged this on their website as one of the indicators mentioned in relation to " are you running a business " was that " you are, or intend in the future to make a profit from your trading activity."
I suspect if many ebay sellers ran a full and frank ruler over their businesses, including things such as stock purchased that never sells etc. many would not make a profit. Heck I,ve got a shipping container full of stuff purchased that I havnt sold yet. I,ve basically been running my ebay business for two years without making any major stock purchases and its going to take a few more years to clear it all out.
I used to buy complete lines of stock from businesses that had closed down at fire sale prices from people who just wanted it gone. I would sell a few choice items to get my money back and then start the slow grind of working my way through the rest. It probably doesnt owe me anything, but there is still a lot of value tied up in the stock.
Car or travel expenses are a legitimate part of any business and the ATO will not blink an eye at claims for legitimate travel expenses. When filing your tax lodgement ask yourself one simple question..............
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