tax for 2 years

[baby*toddler*child]

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

[baby*toddler*child]

Thanku to all that have tried to help, much appreciated.

to phorum_junkie*  and lyndal1838

sorry didn't realise someone that just comments in forums and has really no experience is such an expert on ebay and how it works and the ATO.

I will not be coming back to this forum for anything, all you so called experts can just talk between yourselves without helping anyone as that seems to be what happens.

[donnashuggy]

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

Do you subscribe to sales reports? They will go back 2 years and you can print off 3 months at a time on one page.

[jensmanchester-australia]

Sue - The ATO will be more than willing to assist you if you owe a lot but often by the time you take out all your expenses the profit is not all that great anyway so at this stage it is probably best not to panic.

If you have used Paypal and your bank account to receive payments you will be able to tally up the payments you received from those records. The majority of payments on ebay are made through Paypal so using the advanced search it will be easy to find and print out that information.

You will be able to find out how much your ebay fees have been for the last 2 years by checking in the account you paid them from.

Your paypal fees paid are available through Paypal.

If you have purchased stock using either Paypal or a bank account again you will be able to find out the cost of stock you purchased. The same applies to your postage costs.

It may take a little bit of time but as long as everything has been paid through either Paypal or your bank account you will be able to come up with figures which are reasonably accurate.

Your accountant should also be able to offer advice on other things you may be able to claim which could include the use of a car to get to and from the PO.

It shouldn't matter whether or not your accountant has experience in ebay as basically it is no different to any other business as to what expenses can be claimed.

[kustomizer99]

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.

Thanks for the advice, I didn't know that!

[kustomizer99]

'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.'

Thanks for your concern, but I'm on good terms with the ATO, do the right thing by them and have several professional contacts within the department.

I also know for a fact that they monitor this forum.

Nice of you to check up on me too, though. I was simply wondering if people claimed post and packing -- thanks for letting us know that you do.

When did I say I didn't declare my income, and how is it actually any of your business?

You don't have to answer, that was rhetorical.

[lyndal1838]

If you are on such good terms with the ATO you would not have to ask about claiming postage and packaging....you should have been doing it.  Didn't your accountant tell you what you could claim?

Am I supposed to worry about the ATO monitoring this forum?

And where did I say that I claim postage and packaging?  Just for your information, buyers get no tax breaks.;-)

It is none of my business whether you declare your income but if you have to ask if you claim postage and packaging you are certainly not minimising your tax as they would be a large proportion of your claimable expenses.

[foxette-in-sox]

Why would the ATO monitor an ebay forum where supposedly some ridiculously low percentage of ebayers (think it's less than 5% but don't quote me) even know it exists let have anything to ask or say here ?:|

Can't imagine they'd achieve much even if the did-how odd & what a complete waste of tax payers money if they do.

[wishuponastarcelebrationsandgifts]

I do have an accountant this is how I found out I needed to do tax.

problem is ebay selling is so unique that not many accountants have delt with it, that's why all my questions.

Operating via ebay or any other sales channel does not change the fundamental requirements regarding liability to lodge a tax return or pay tax.

If your accountant is concerned about how to deal with your ebay activities I would urge you to engage another accountant. I would be running out the door if their knowledge of the basics is that poor.

All you need to tell him/her that is specific to ebay:

• you pay ebay fees (give them the statements with the details. If the fees come out of your bank/Paypal/credit card you don't even have to do that. Just mark them on the statements for them)


• you pay Paypal fees


• you pay postage for the items and charge this to your buyers


• you operate online (ie claim for relevant internet/computer costs etc)


• if you operate from home if you have a specific area set up eg an office, storage area etc and how many hours a day you work (potential claim for depreciation of furniture, electricity etc)


• if you drive to the post office the type of car you drive eg 4cyl 1600cc etc, how many times you travelled to the post office and the distance (eg to claim cents per km method deduction if you don't keep a log book)

This is just a sample. The accountant will know what else they need to ask you.

As for the issues regarding whether to claim mortgage payments etc you need to discuss this with your accountant in the context of your specific situation. Tax effect accounting will result in different solutions for each individual client.

The $20,000 threshhold that is bantered about has nothing to do with liability to lodge a tax return or pay tax. All it means is that the ATO may do some data matching to identify potential non decalaration of income. You could sell $5,000 a year and be deemed to be running a business.Total income from all sources is relevant in determining whether you need to lodge a tax return and pay tax.

The ATO also undertake other data matching activities and have other methods for conducting audits (including random audits) so anyone that thinks they are safe from an audit because they sell less than $20,000 on ebay may be in for a surprise.

[wishuponastarcelebrationsandgifts]

Why would the ATO monitor an ebay forum where supposedly some ridiculously low percentage of ebayers (think it's less than 5% but don't quote me) even know it exists let have anything to ask or say here ?:|

Can't imagine they'd achieve much even if the did-how odd & what a complete waste of tax payers money if they do.

I would seriously doubt they would monitor the forums as it would be a waste of money and time. Any ATO officer that is divulging information in breach of the secrecy provisions they are bound to adhere to, could also find themselves in trouble.

[lyndal1838]

No my daughter in law started the business but it all got too much for her she has handed it over to me, after it was not trading for a period of time.

This statement concerns me greatly.  Who actually owns the ebay account...you or your daughter in law?

If the account is still in your daughter in law's name then any tax liability is hers, not yours.

As far as I am aware you cannot give an ebay account to anyone else.