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  • #978818
    Paul B.
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    Hi Guys,

    If you have been on here regularly you would be aware im setting up an online postage stamp store.

    I have received several quotes to have a website built and it has become apparent that the initial outlay is higher than I expected.

    I have settled on a trading name and website domain. I currently sell on ebay under the guise of a hobby.

    So my question is:
    If I register my business name and domain name but not plan on trading under either of these (in the short term), would I still have grounds to claim im still operating as a hobby? Or would I need to start declaring my income from ebay as taxable income?

    #1109753
    Kennethti
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    No, it doesn’t sound like it. You’ve gotten a trading name. That probably pushes it too far over the line.

    #1109754
    MyGreatIdea
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    And the ATO has nominated eBay traders as one of the groups they are targeting this year.

    I don’t believe you qualify as a hobby. I’d go into full business mode if it were me.

    Wendy :)

    #1109755
    Paul B.
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    Couple It, post: 122171 wrote:
    And the ATO has nominated eBay traders as one of the groups they are targeting this year.

    I don’t believe you qualify as a hobby. I’d go into full business mode if it were me.

    Wendy :)

    Haha really? Well what do you know…

    Ok here’s a question: are ebay/paypal fees counted as claimable expenses for tax purposes?

    #1109756
    MyGreatIdea
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    Yes, they are a legitimate cost of running your business, in the same way that paying a sales commission to someone would be deductible.

    This link on the ATO website gives you a good guide to allowable deductions.

    Wendy :)

    #1109757
    JacquiPryor
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    And, this page at the ATO site will help distinguish whether you are a hobby or business.

    Whether you are one or the other is not determined by whether you have a business name/domain name etc but whether your activities are more appropriately described as a business than a hobby…

    I agree with Kenneth that registering business name, domain name etc would ‘push it over the line’ – assuming you are on the ‘hobby’ side of the line to begin with. Do you have an ABN already, used in your eBay sales? I believe that in order to get an ABN in the first place you would have said you were a business… answering in the ABN application that you were only a ‘hobby’ probably would have resulted in them rejecting your request for the ABN.

    #1109758
    Paul B.
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    JacquiPryor, post: 122178 wrote:
    And, this page at the ATO site will help distinguish whether you are a hobby or business.

    Whether you are one or the other is not determined by whether you have a business name/domain name etc but whether your activities are more appropriately described as a business than a hobby…

    I agree with Kenneth that registering business name, domain name etc would ‘push it over the line’ – assuming you are on the ‘hobby’ side of the line to begin with. Do you have an ABN already, used in your eBay sales? I believe that in order to get an ABN in the first place you would have said you were a business… answering in the ABN application that you were only a ‘hobby’ probably would have resulted in them rejecting your request for the ABN.

    Hi Jacqui,

    No I do not have an ABN. I could successfully argue that my current operations are strictly a hobby any day of the week.

    However as you have identified, the fact that I am setting up a name and domain may not look favourably towards being a hobby (even though my operations wouldn’t change in the mean-time).

    So im at a crossroads:
    – do I continue my operations as is with the hope someone doesnt register my name and domain, or

    – do I bite the bullet and start paying tax on my ebay sales.

    #1109759
    JacquiPryor
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    Hi Paul,

    I would suggest you bite the bullet regarding tax etc (well, if it were me I think that’s what I would do). As the ATO is reportedly ‘targetting’ eBay sellers then your activities there may come across to them that you are already a ‘business’ rather than ‘hobby’ (in their eyes), and if they found that they would also find you are operating without an ABN… so, by voluntarily getting yourself set up now – you will be good to push your business further obviously, but also (likely) escape penalty if the ATO does target eBay sellers.

    At the end of the day – the ATO will look at various aspects to determine hobby or business – including ‘intentions’ and ‘prospects’ within your activities. So, registering business name/domain obviously demonstrates an intention to be in business.

    Bit hard to say definitively without knowing the ins and outs of your ebay trade obviously so the above is just my “general” 2c worth :)

    #1109760
    Paul B.
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    JacquiPryor, post: 122183 wrote:
    Hi Paul,

    I would suggest you bite the bullet regarding tax etc (well, if it were me I think that’s what I would do). As the ATO is reportedly ‘targetting’ eBay sellers then your activities there may come across to them that you are already a ‘business’ rather than ‘hobby’ (in their eyes), and if they found that they would also find you are operating without an ABN… so, by voluntarily getting yourself set up now – you will be good to push your business further obviously, but also (likely) escape penalty if the ATO does target eBay sellers.

    At the end of the day – the ATO will look at various aspects to determine hobby or business – including ‘intentions’ and ‘prospects’ within your activities. So, registering business name/domain obviously demonstrates an intention to be in business.

    Bit hard to say definitively without knowing the ins and outs of your ebay trade obviously so the above is just my “general” 2c worth :)

    Yes, it is becoming more apparent that I should register the name and get the business moving. Very help as usual Jacqui – thanks! :)

    #1109761
    LucasArthur
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    Couple It, post: 122171 wrote:
    And the ATO has nominated eBay traders as one of the groups they are targeting this year.

    I don’t believe you qualify as a hobby. I’d go into full business mode if it were me.

    Wendy :)

    Hi Wendy

    Yeah i hear this… ATO have been targeting ebay sellers for a while, or populating databases in order to target more accurately in the ‘near’ future. I recall 12 months or so ago that eBay had to advise everyone selling over a certain amount (think was over $20k but awaiting correction from forumites) that they had been requested by the ATO to provide lots of details about sellers,, eg name, registered biz name, bank account, etc etc

    Will be interesting.. as a side note, i also hear that they are still planning on targeting garagesales.. been spoken about lots, not sure how true, although there are people making a living from conducting monthly garagesales.. mmm.. that will be fun….

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1109762
    SuzsSpace
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    The last figure I heard about with regard to eBay and the ATO was $20k and that was only about a month ago.

    I have to get a life and get off forums, really. I browse the eBay forums as well.

    #1109763
    Anonymous
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    Paul B., post: 122168 wrote:
    Hi Guys,

    If you have been on here regularly you would be aware im setting up an online postage stamp store.

    I have received several quotes to have a website built and it has become apparent that the initial outlay is higher than I expected.

    I have settled on a trading name and website domain. I currently sell on ebay under the guise of a hobby.

    So my question is:
    If I register my business name and domain name but not plan on trading under either of these (in the short term), would I still have grounds to claim im still operating as a hobby? Or would I need to start declaring my income from ebay as taxable income?

    Hi Paul,
    Not sure if these websites meet your needs.
    http://geohosting.com.au/package.html

    Cheers

    Ron

    #1109764
    MyGreatIdea
    Member
    • Total posts: 2,278
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    RKB, post: 122216 wrote:
    Hi Paul,
    Not sure if these websites meet your needs.
    http://geohosting.com.au/package.html

    Cheers

    Ron

    Are you affiliated Ron?:rolleyes:

    Wendy :)

    #1109765
    kathiemt
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    Funny, but I heard about eBay being targeted by the ATO just this week on the news.

    Personally I think if you’re earning money from it and you’re already employed, wouldn’t you have to be declaring any other income as well? Sure, if it’s only a bit now and then maybe not but if you’ve been fairly serious on eBay and drawing regular ‘income’ then it’s obviously more serious.

    With respect to your website, have you got someone started on that? You mentioned you’d been getting quotes and they were higher than you had anticipated. I also do websites for clients and would be interested in having a chat to you about doing something you can have control of, that won’t cost you the earth.

    #1109766
    Divert To Mobile
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    following up on what Kathiemt said above – Ive also heard that the ATO is trying to find a way to collect on income through paypal (ebay)

    Steve

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