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Tax question...

Discussion in 'Australia' started by CCCP, Jan 10, 2008.

  1. CCCP

    CCCP Formula Junior
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    Apr 26, 2007
    487
    Italy
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    Max
    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...
     
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  3. beama

    beama F1 Rookie

    Oct 27, 2005
    3,555
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    Steve. G.
    It depends how much you earn in total and how much tax you've already paid.
     
  4. CCCP

    CCCP Formula Junior
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    Apr 26, 2007
    487
    Italy
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    Max
    So best to sit down with a tax agent and run through all my salaries for the financial year right?
     
  5. beama

    beama F1 Rookie

    Oct 27, 2005
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    Nah, forget tax returns, just do a runner.
     
  6. CCCP

    CCCP Formula Junior
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    Max
    haha i wish...
     
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  8. Aircon

    Aircon Eight Time F1 World Champ

    Jun 23, 2003
    88,809
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    Peter
    sound advice!

    see how wonderful fchat is? :)

    you can find the answer to everything here.
     
  9. beama

    beama F1 Rookie

    Oct 27, 2005
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    Steve. G.
    Spoken like a true cash king. Who needs google?
     
  10. goober

    goober F1 World Champ

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    Buddy Miles


    u didnt need fchat to find an oil leak, did u?
     
  11. Looney

    Looney F1 Rookie

    Jul 1, 2004
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    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)
     
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  13. beama

    beama F1 Rookie

    Oct 27, 2005
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    Steve. G.
    Don't give up your day job to become a tax advisor.
     
  14. goober

    goober F1 World Champ

    Nov 15, 2004
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    is that why chopper read and u live in the same state
     
  15. CCCP

    CCCP Formula Junior
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    Max
    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?
     
  16. beama

    beama F1 Rookie

    Oct 27, 2005
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    Steve. G.
    He used to...the joint ain't big enough for both of us.
     
  17. goober

    goober F1 World Champ

    Nov 15, 2004
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    advice, possibly yes, but work on your own gut instincts
     
  18. CCCP

    CCCP Formula Junior
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    Apr 26, 2007
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    Max
    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.
     
  19. waz356

    waz356 F1 Rookie

    Dec 5, 2005
    3,669
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    warren
    well you could try the lady behind the counter at the local fish and chip shop but... :rolleyes:
     
  20. beama

    beama F1 Rookie

    Oct 27, 2005
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    Just like I said...see post #4. Trouble is though, when I get gut instincts, they are usually followed by a JM special.
     
  21. goober

    goober F1 World Champ

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    nah i prefer courier drivers in econovans or Indians in taxis
     
  22. CCCP

    CCCP Formula Junior
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    Which one? :eek:
     
  23. beama

    beama F1 Rookie

    Oct 27, 2005
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    Steve. G.
    Pauline H's...she's got big titties
     
  24. goober

    goober F1 World Champ

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    and red hair which means the box is smelly
     
  25. moretti

    moretti Four Time F1 World Champ
    Lifetime Rossa

    Nov 1, 2003
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    HAHAHHAHAHA I can't tell whether you are lying or not .... never been out with a redhead that didn't have 4 wheels :D

    or are you telling us the TR smells "down there" ?
     
  26. Kelsa

    Kelsa F1 Veteran

    Jul 25, 2005
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    Adult Toy Land
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    Crazy Chinaman
    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.
     
  27. goober

    goober F1 World Champ

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    its a fact all red heads stink in the box dept
     
  28. CCCP

    CCCP Formula Junior
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    Apr 26, 2007
    487
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    Max
    hmm some good points. do most accountants know how pay pal works and what can be taxed and not?
     

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