IRD and Trademe

The IRD are checking everyones Trademe sales to catch those folks that are making a living from buying stuff and then on selling it to make money out of it. That was in local paper yesterday. I wondered when I withdrew our big truck that we had sold, as there was a place to put the amount you had sold the article for, and I could not get out of that area until I had entered the amount of money we had got for it. So be warned as that is what they are doing.

I read that a week or two ago, Rae, impression I got was that they were targeting full-on traders, as in those who are running what amounted to businesses buying and selling, as opposed to those selling their own bits and pieces from households and hobbies/incidentals []

Fair enough. They are only trying to catch those individuals using TradeMe as a business store (ie as a place to sell) and are not paying tax on their income. If you are selling one-off items (ie you use it to sell your vehicle) then you will have nothing to worry about. If however, you are operating as a trader and buying and selling vehicles (or any item) for a higher price (ie your intention is to make a profit - otherwise why would you buy high and sell low) then you are a business and should be paying tax as a result.

Good on the IRD; they are closing a loophole.

they are collecting car and truck sales prices as they are selling the salesprice data basically.

The only issue you would have with the IRD over selling a truck you used is if you had claimed depreciation and the book value was less than you sold it for.

I was talking to an IRD staffer a few months ago about this very subject along with people who trade properties alot, think basically they are after those who are turning over significant amounts.

Great I know one I hope they catch

The Secondhand Dealers & Pawnbrokers Act is often the legislation that IRD will hunt you down on.

Essentially you get to on-trade second hand items worth $2,000 or "on 6 days" per year before legally having to have a Secondhand Dealers & Pawnbrokers Licence. The licence costs about $350 and requires police checks, etc. It's all about the authorities having checks in place to be able to track stolen goods.

I hope that they cross reference sales with WINZ income too. a certain retired family member on the public purse for unemployment does very well buying at auctions and then on selling on TM.

Bitter about people avoiding paying tax on the profits of trading on Trade Me?

Small fish I reckon.......

news.bbc.co.uk/2/hi/special_report/1999/...yclopedia/302366.stm

woow geez sod mate .... I didnt really mean to sell that drum set i won, on trade me and not declare its income honest i didnt lol lol lol
lol but at 50 years old, i just didnt have a need for a drum set lol
lol its the one and only thing i have ever sold on trade me ... brought a bit though

Gidday

And if your lifestyle block is registed as a business or for Grab Snatch and Take and you are selling anything to do with any income earning don't forget to declare the sale. Otherwise you will be done big time for tax evasion. Could cost thousands.

I agree with the IRD auditing the site and I hope they do catch heaps of tax dodging bludgers!

If however, they ask me to pay Tax on the Horse Truck I owned for over 10 years, I will be asking for a Tax refund on what it cost me over what I received. Fair enough?

LOL so your another one Stu well now I know that makes 2 HE HE.

DiDi;260971 wrote: I agree with the IRD auditing the site and I hope they do catch heaps of tax dodging bludgers!

If however, they ask me to pay Tax on the Horse Truck I owned for over 10 years, I will be asking for a Tax refund on what it cost me over what I received. Fair enough?

Yep I reckon. Quick for others to try and justify though eh?

DiDi;260971 wrote: I agree with the IRD auditing the site and I hope they do catch heaps of tax dodging bludgers!

If however, they ask me to pay Tax on the Horse Truck I owned for over 10 years, I will be asking for a Tax refund on what it cost me over what I received. Fair enough?

If it's a business asset you will of course be depreciating it every year, which effectively 'refunds' the tax you would be liable for.

A

ame;261412 wrote: If it's a business asset you will of course be depreciating it every year, which effectively 'refunds' the tax you would be liable for.

A

And you would have been claiming against all the expenses involved keeping it on the road/running it also...[]