Australian tax on trading cards?

Hello all,

Something that has been on my mind as of late. Does capital gains tax in Australia apply to trading cards?

For example, if I bought $10,000 worth of cards which I sell one year later for $30,000 through a website (like OZCT), is that extra $20,000 profit taxed?

I've also noticed some AFL powersellers will sell all their commons individually (at $1 each) which would definitely result in a net loss due to ebay fees. Is the loss a way of dodging tax by claiming capital gains loss?

Anyone!?

Give ATO a call, i cant remember what department but i had a couple of really long calls earlier this year. Quick disclaimer that im not an accountant and you really gotta call the ATO eventually.

I dont think my answer applies directly to your question, but it might get you on the right track. I was driving around the city one day and was on the hunt for stuff, so i had the headset on while i made 2 verrry long calls to the ATO.

Basically, what I got was that if you purchase an item, it needs to be less than $500 and your original intent for purchasing it can't be for flipping or turning a profit. If it fits that criteria, no matter what you sell it for you CANNOT be charged capital gains tax.

If your intent was to profit then you get categorized kind of as a small business enterprise and it gets complicated with ABNs and stuff. Also, if it is given as a gift or inherited from a deceased relative or friend, you cant be taxed on the sale either (I'd assume you's need documentation supporting the gift/inheritance though).

If it does look like you might be questioned over the sale, you can voluntarily seek a....what was the word....case exemption (or something like that) where you talk to a specific type of accountant from the ATO who reviews your case and deems it non-taxable. It goes on record and protects you in the future. I think that can be done prior to the sale, during or after.

Something else I found out (and again it may be changed by now) is that ebay now notifies the ATO if you make a single sale of over 10k or if you have an annual total from sales of over 15k.

Thats what I remember anyway. Gluck with that mate.

Thanks for your story supertoad, it seems pretty consistent with what I've been raeding, but I've yet to call the ATO. Interesting that ebay also notifies the ATO of large sales.

There are a great number of people on here that buy and sell thousands of dollars worth of cards every year... does anyone declare it to the ATO?

A lot comes down to if your running a "business" or a "hobby" for tax purposes. Read this...

http://www.ato.gov.au/corporate/content.aspx?doc=/content/00199712.htm

eBay automatically reports all sales aggregating $75K per seller in the financial year to ATO.

Is that because you have to be registered for GST at $75k Alex?

ooneil said:

Is that because you have to be registered for GST at $75k Alex?

Click to expand...

Yup, that GST rule is the easiest rule to apply.