declaring Ebay income ?

myjugsarehuge

Can anyone advise me before I resort to trying to confuse the Revenue Commissioners :rolleyes: I buy and sell lots of things on Ebay, amongst the things I sell are short breaks at my B&B.

I am registered as a business seller on Paypal but don't have an Ebay Shop. Do I have to include this "income" from the holiday auctions in my tax returns ? I usually only auction one holiday a month or so, its hardly megga bucks but I just wanted to check.

I don't declare income if I auction an ornament or a painting etc and the short breaks are true auctions, not "buy it now" but where do I stand on declaring the money I gain.

Thanks

seamus

Where you are reselling items that you previously purchased (such as ornaments and paintings), you don't have to pay tax. If you are selling items that you produce, then you have to pay tax.

Assuming that you normally declare your income from your B&B, then yes you would have to declare the auctions for the short break as ultimately it is revenue for your business.

amen

Where you are reselling items that you previously purchased (such as ornaments and paintings), you don't have to pay tax

I don;t think that is a true statement. i belive you have to pay Capital gains tax on anything you sell for instance I buy a car for €200 sell it for €400 then I am mean to pay tax on the €200 profit
but if my threshold is below the yearly Captial Gains limit I don;t have to declare.

There was an article in the Irish Times a few weeks ago about the Canadian Revenue Commissioners who got a list from Ebay of all regsitered canadian users and what the they had sold over the previous year.

They were then performing random audits to see who had declared an income.

Might happen here

Pythia

amen wrote: »

I don;t think that is a true statement. i belive you have to pay Capital gains tax on anything you sell for instance I buy a car for €200 sell it for €400 then I am mean to pay tax on the €200 profit
but if my threshold is below the yearly Captial Gains limit I don;t have to declare.

There was an article in the Irish Times a few weeks ago about the Canadian Revenue Commissioners who got a list from Ebay of all regsitered canadian users and what the they had sold over the previous year.

They were then performing random audits to see who had declared an income.

Might happen here

This is wrong.
You will not have to pay capital gains tax on the resale of a 'wasting chattel' (old fashioned term meaning, basically, something with an average life of under 50 years).

from here

Do all disposals of assets give rise to CGT liability?

No, not all disposals (of assets) give rise to a charge of CGT. For example, any gains arising in the following circumstances are not regarded as giving rise to chargeable gains and hence are not liable to CGT

Gains from the disposal of Governmental Stocks and Securities.
Gains from the disposal of tangible movable property, where the amount or value of the consideration does not exceed €2, 540.
Gains from the disposal of wasting assets, i.e. assets with a predictable life of less than 50 years, for example, a private motorcar, livestock etc.
Gains from the disposal of your principal private residence. (See questions 12 & 18)
Prize Bond, Lottery and Gaming winnings

myjugsarehuge

I don't earn enough to pay tax anyway so it doesn't really matter, I just will have to transfer the money earned from Paypal to my business bank account rather than my private one in future.

Thanks for the advice.

seamus

amen wrote: »

I don;t think that is a true statement. i belive you have to pay Capital gains tax on anything you sell for instance I buy a car for €200 sell it for €400 then I am mean to pay tax on the €200 profit
but if my threshold is below the yearly Captial Gains limit I don;t have to declare.

I had initially included CGT in my post but then edited it out. After having a look on revenue.ie, I assumed that the OP wasn't selling anything which would fall into the bracket for CGT as Pythia points out

Of course you could argue that fine bone china and paintings have no sell-by date, but I don't think the amounts involved are worth stressing about.