Tax and eBay 20% off Sales and Cashbacks

[Deactivated] on 27/08/2017 - 13:40

I know it's very early to worry about this, but I thought I would try to find a solid answer now…

First Question:

I bought a computer (for work) off eBay for $349 - 20% ($279). I'm unsure if I can claim the full amount on tax at the end of the year. As it's both technically over and under $300, it's a little confusing.

  • The computer is purely for work purposes. It's staying at work.
  • The eBay invoice says $349.00
  • I paid only $279.00
  • I've not yet received any kind of official invoice (beyond the above mentioned eBay invoice)

Second Question:

I purchased a Lenovo E470 to use on other sites (I'm constantly between sites - the computer above stays permanently on the main site). I received $52.50 cashback for this after paying $825. How do I reflect this on tax at the end of the year? I understand I will more than likely have to pay tax on the $52.50, but I'm unsure how to correctly put it in a tax return.

Do I simply claim the full price of $825.00 then declare $52.50 as income or do I just claim $772.5 (825 - 52.5)?

Note I understand the laptop price much be depreciated either way, just unsure about the amount to go by.

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Comments

  • whooah1979 on 27/08/2017 - 14:34
    +1

    I'm unsure if I can claim the full amount on tax at the end of the year.

    claim the amount based on the documentation you've available.

    The eBay invoice says $349.00

    if that's what the invoice state, then that's what you claim.

  • whooah1979 on 27/08/2017 - 14:36

    Do I simply claim the full price of $825.00

    does the tax invoice show $825? if yes, then that's you answer.

  • kev98 on 27/08/2017 - 15:01
    +2

    I asked a tax specialist this, they said it is based on self-assessment. You should only claim what you actually paid not the full amount listed on invoice, I'm sure many people claim the full amount and get away with it though. Wouldn't you be better claiming $279 and writing it off over one year

    • [Deactivated] on 27/08/2017 - 20:31

      I want to be honest about it, I just wasn't sure exactly how to do it. The full cost is $349, which means it should be depreciated… But the actual amount is $279, which means it could be claimed outright.

      My question is more if I can claim it outright or not, rather than if I can claim the full $349.

        • [Deactivated] on 27/08/2017 - 20:41

          So you reckon claiming $279 outright is the fair thing to do? The above clears up claiming the 20%, but I wasn't going to claim that anyway. I'm simply unsure if I still have to depreciate it over 4 years (as it's a computer over $300) or claim it outright (as I paid under $300).

        • kev98 on 27/08/2017 - 20:47

          @dyl: I'm no accountant, but I would think you could claim 100% of $279 if it is only being used for work purposes. Speak to a tax person though

  • Ocker on 27/08/2017 - 19:24
    +1

    Why be a cheapskate - ask a professional to get the correct answer! The old rule applies again in this case - "free advice is worth exactly what you pay for it - sfa"

    • [Deactivated] on 27/08/2017 - 20:31

      Was thinking of it, though thought maybe others had already asked a professional the same question.

  • gyrex on 28/08/2017 - 17:44
    1. The ebay invoice isn't a tax invoice. The tax deductible amount is $279 (what you paid for it).
    2. The cash-back isn't taxable income so you don't pay income tax on it. The cash-back formed part of the sale as a discount. Your tax deductible amount is therefore $772.50.
    • whooah1979 on 28/08/2017 - 19:14

      The ebay invoice isn't a tax invoice.

      op isn't asking about an input tax credit which is what a tax invoice is for. the ebay/supplier has provided op with an invoice. that may be the only documentation op has of this transaction.

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