hey guys, Got a question to someone who knows their tax and tax returns... I currently work in a 9-5 job Monday to Friday where i get paid a yearly salary. I pay tax on that automatically. I also own a side business which my friend and I share. We accept pay pal and direct bank transfers from our customers so its not cash in hand. My question is about my tax return for this year. If for example I make alone around 20 K from my side business this year, how much of it would I lose to tax? Is it 1/3 of it? So meaning 20,000 - 6000 = 14,000. Does it mean that I will actually need to pay the tax man 6000 out of my pocket? Im a bit newbie when it comes to personal business taxes...
i guess its a question of whether its really a business or not. im guessing its an Ebay thing? if your just trading ebay it could be seen as a "hobby" but i guess it all comes down to the details. the tax man always makes the rulings they way they like, not the way thats fair. if you paint and sell your pictures for less than they cost you for 20 years they call it a hobby (and you therefore cant claim the expense of the canvas etc), but if you all of a sudden get $1m for a painting, you better beleive theyre not going to call it a hobby anymore. (just an example, not a specific anicdote)
Its not entirely ebay thing, we just use pay pal as one of the ways we accept payments. Could be a hobby haha in a way it is really. Is accountant my best advice giver?
My gut instinct tells me "run"!!! lol Na they will trace my pay pal and bank transfers regardless... I font want to have an ATO agent send me a letter 2 years down the track.
Just like I said...see post #4. Trouble is though, when I get gut instincts, they are usually followed by a JM special.
HAHAHHAHAHA I can't tell whether you are lying or not .... never been out with a redhead that didn't have 4 wheels or are you telling us the TR smells "down there" ?
not quite. same as you buy a car and then sold it for double the money you paid for it. It is tax free, technically, you can buy 10 cars and then flog them with a profit and ATO can do anything about it. However, they might get you for selling cars without a dealer lisences. if person A sells stuff on eBay, unless that person register his ebay account as a business, then it is purely selling privately owned good (owned by person A or someone else who sell the goods through person A's ebay account), even tho money are wired through paypal/account, it does not mean it is a way of personal income.