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  • #966241
    cathnniv
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    Quick question???

    I am trying to raise more money towards my business start up.
    I am hoping to buy and resell second hand cars to raise a few thousand.
    Does anyone know how many you can sell per year before it becomes a business or more importantly a problem??

    #1016957
    Anonymous
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    cathnniv, post: 19300 wrote:
    Quick question???

    I am trying to raise more money towards my business start up.
    I am hoping to buy and resell second hand cars to raise a few thousand.
    Does anyone know how many you can sell per year before it becomes a business or more importantly a problem??

    Why would you try to avoid tax? There are legitmate ways to minimise it which is far better than trying to avoid it.

    Get an ABN. Get a tax accountant. Find out what you can claim as you only get taxed on your income AFTER YOUR BUSINESS EXPENSES … thus you earn, claim your deductions, then get taxed.

    Goodness, some years I’ve gotten the low income payment (even tho’ I wasn’t poor) because I’ve played it smart with my deductions HAHAHA

    #1016958
    cathnniv
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    • Total posts: 15
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    Hi vstacy i am not looking at this as a business of any kind simply a quick way to make a few thousand to fund my business startup.
    I have 3000 and need to turn it into 10000 ideally by say feb

    This is the only way i can think of other than ebaying which seems slower and is a bit hit or miss

    #1016959
    Anonymous
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    The tax department will wonder how you got such a large sum of money esp. when it comes to your first end of year tax return….?

    (Plus by law any way you earn an income is classed as a business!)

    It’s not worth trying to avoid. You’re already starting the business off the wrong foot by being devious with the start up funds.

    At the same time, no one can stop you if you want to try to avoid paying tax. Just don’t “come crying to mummy” if you get hit by the ATO (and don’t think “oh I’m too small for them to worry about..” I’ve know other people who have got hit because of that thinking)

    #1016960
    belonna
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    • Total posts: 11
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    cathnniv, post: 19300 wrote:
    Quick question???

    I am trying to raise more money towards my business start up.
    I am hoping to buy and resell second hand cars to raise a few thousand.
    Does anyone know how many you can sell per year before it becomes a business or more importantly a problem??

    It would definitely be classed as a business. No way out of it.

    Nice to see a fresh fund-raising idea for start ups! Ebay as you said is definitely hit and miss and those listing fees can really add up.

    #1016961
    cathnniv
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    • Total posts: 15
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    ok, no crying to mommy as i am not trying to avoid tax???
    i don’t understand why you think i am.
    I have 3000 like i said i know legally you can buy and sell an amount as a hobby or for personal use, (as an example my friend buys at least 3 cars per year spends too much doing them up and sells at a loss) purely for himself as he loves cars. being in a country town i can buy at auction sell for a bit more say 4 cars is all i’m talking and add to my bank account therefore having more to put into other avenues.

    This is not a long term option for me purely one of many idea to make a little extra. I will keep all paperwork for tax if it makes everyone feel better as i am not worried about tax just wanting to know my limits??

    #1016962
    cathnniv
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    • Total posts: 15
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    Thankyou belonna for your positive post.

    I thought it was a decent short term idea? isn’t business all about thinking outside the box?

    If anyone knows a quicker or better way i’ll try that too.

    #1016963
    King
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    • Total posts: 2,212
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    (Plus by law any way you earn an income is classed as a business!)

    Not true – as mentioned there are hobbyists making an income out there.!!

    Cathnniv – be wary of being classed, by inference, as being a car dealer and needing a licence, warranty implications etc.

    I guess you would be doing this as a private seller, but there is sufficient paperwork involved in car sales that it may raise red flags somewhere.

    Question though , if you only have $3000 to start with, how are you going to afford to buy the car in the first place – you won’t get much for $3k

    #1016964
    cathnniv
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    • Total posts: 15
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    Hi King,

    This is what i wanted to know, how many you are allowed to sell before being considered a dealer.
    I will phone the rta etc today and let everyone know.

    As for cheap cars, i can buy 3 at 1000 a piece at auction and resell for hopefully around 2000 depending on whats around of course otherwise my dad recently bought a volvo in good condition for 3000 and resold in town for 7000 these are harder to find but not impossible. i’m in a country town where ppl pay more for certain types than in the city

    #1016965
    Hugh Thyer
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    • Total posts: 159
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    How dare you try to avoid tax.

    Pay as much as you can I say.

    Me? I pay my tax bill, then make a small donation to the ATO on the side.

    You greedy business people make me ill.

    #1016966
    King
    Member
    • Total posts: 2,212
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    Interestingly the original post never mentioned tax avoidance.

    Hugh Thyer – what a weird post to make ona business forum – almost as odd as claiming to make extra donations to the tax department, which if course is not possible. Do I detect a flamer?

    #1016967
    Hugh Thyer
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    • Total posts: 159
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    I also noticed there was no mention of tax avoidance in the original post. Not sure why everyone jumped on the poor person accusing him of it. To me it seemed that the question was simply at what stage do you need to become a licensed motor vehicle trader?

    I was rather taken back at the chorus of people taking offense at wanting to minimise tax. I get back every dollar I can. I’m sure I can put it to better use than mr Rudd.

    So yes, a bit tongue in cheek!

    #1016968
    cathnniv
    Member
    • Total posts: 15
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    Glad to see someone else on here can see my point.

    I found the comments both negative and un helpfull. I am simply desperate to start my business as after years of having brilliant ideas with no funding to go ahead i get to watch others get in and make them a success. I’d like to avoid a bank loan as much as possible or at least have a substantial amount to show them i am taking myself seriously.

    Anyway thanks to the positive posters i will not give up easily so will let you know how this pans out.

    #1016971
    JustJames
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    • Total posts: 104
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