Australian Tax Office requirements

[wests1952]

Some time ago Ebay informed everyone that it must advise the ATO of all sellers that had sales in excess of $20,000 pa.  Recently I heard that the ATO has asked Ebay to advise them of all sellers that have sold in excess of $10,000 pa.  Has anyone else heard of this and if so when did Ebay send out the advice.  Thanks.

[joanna_oz]

Hi everyone

We apologise for the confusion but we got our wires crossed on this one. This is a genuine email.

You don’t need to do anything in response to the email. If you have any queries about how the ATO uses the data provided to it by eBay, visit the ATO at this link or contact the ATO directly.

Once again, sorry for the confusion.

Joanna_Oz

The eBay Team

[joanna_oz]

Hi everyone

We apologise for the confusion but we got our wires crossed on this one. This is a genuine email.

You don’t need to do anything in response to the email. If you have any queries about how the ATO uses the data provided to it by eBay, visit the ATO at this link or contact the ATO directly.

Once again, sorry for the confusion.

Joanna_Oz

The eBay Team

[coinstony]

joanna_oz well if its okay how come you sent it to people who HAVENT sold more than 10,000

[6littlebears]

So if we have to provide info to the ato, what exactly is it that we have to show them? Is it just sales reports etc?

I don't have an accountant but I would like to know what I would have to have ready when I go to one so that I am one step ahead.

[davewil1964]

Would have to have?

Are you just starting out selling?

All records would need to be used to determine your taxable income from eBay. Gross income, less expenses. Things like stock cost, transportation costs, postage and packaging, promotional material, eBay and Paypal fees, bank fees, internet fees (for the selling portion of your internet use), electricity, dedicated office space as a portion of rent (I wouldn't recommend it if you own your home, as that % will attract capital gains tax if you sell) all count as expenses that MIGHT be applicable.

I would get an accountant.

[6littlebears]

I have printed out all of the paypal info for each month which shows the amounts bought and sold. Would I have to print out each item seperately to show all of this or would the months worth all together be ok? Thanks.

[davewil1964]

No idea. I attribute my costs on a per sale basis. But I'm another word for methodical which got bleeped.

As far as I know, as long as you have justifications for any expenses incurred they can be used to offset income. But Paypal records will not show eBay FVF or listing or shop fees, so I would be getting copies of those as well. But there are many other legitimate deductions you would be eligible for.

You seem to be a buyer only these days, so maybe you don't have to worry. Audit-wise.

[emeraldtarpon]

This is very simplistic and makes no mention of capital gain/loss.

Generally, if you sell an item for less than you purchased it for then you have incurred a capital loss not an income.

[grannytakesatrip17]

Ok so how does someone like me stand. Who is over 60 years old and has been a collector of old items since the age of 12. I couldnt possibly have a clue how much I paid for things or how much things were worth when many generous elderly realitives and friends passed things on to me. Sure in the last 20 years I have added to my collection of vintage items, but it is just a hobby that has got seriously out of control and I have been selling some items each year through ebay and I consider them to be personal posessions collected over many years. Certainly not bought with the intention of making a profit. Just a collector gone mad!

[cq_tech]

If in doubt, log on to the ATO website and check their guidelines, or better still, ring them and ask, but unless you're buying stock with the specific intention of selling it on eBay at a profit, and are essentially only selling your own odds and ends which you've accumulated during your lifetime, you are what the ATO refers to as a hobby seller and therefore have no tax liability on any income derived from the sales of these items.

I should point out that I am neither an accountant nor a tax agent but this is my understanding of the tax laws as they currently stand in this country, and I'm absolutely certain that the ATO will tell you exactly the same thing.

[grannytakesatrip17]

Thank you,

This sounds like common sense to me, how could I possible reacall if I paid 2 shillings 40 years ago at a jumble sale for something for goodness sake!