RELEASING our POWER SELLER INFORMATION- and other nonsense

[lina-mallows]

While we appreciate eBay's protection of our privacy-
eBay is also free to release this information with OUR CONSENT being the user.
Rather than waste further eBay resources fighting this matter on behalf of ALL eBay users-
WHY NOT SIMPLY PROVIDE POWER SELLERS WITH THE MECHANISM TO RELEASE THEIR INFORMATION!

eBay is fighting on our behalf for something (protecting our privacy) which WE PERSONALLY DO NOT WISH TO PARTICIPATE IN!

Why is this option/mechanism to release our eBay information not being made available?

[magisterrex]

Because the administration of such a strategy would cost more money.

[whoscloset]

Magisterrex is right.

However, I don't personally have any probs with ebay releasing my info. I claim everything....and still manage to write it all off due to the renovations I've done on my home over the past few years.

I sure am glad that none of this is keeping me up at night. 🙂

[lina-mallows]

whoscloset - you wrote "and still manage to write it all off due to the renovations I've done on my home over the past few years."

If you live in your residence, AND use it for business- good luck figuring out all the DEDICATED use rules. Just because you use your kitchen table for packing- doesn't mean you can write the table off- or the NEW kitchen. Not that you said you were doing these things.
But- for those curious- it begs asking- what renovations to your home do you honestly believe you can write off as an eBay expense?
(Then, as always, it's up to the Government tax experts to decide the validity.)
There are likely those reading this that may find this INFO helpful.

[whoscloset]

An entire half of my FINISHED basement as well as one bedroom, furnished as an office, easily allows me to write off 1/3 of all household expenses.

If you don't understand the tax laws you should hire a qualified accountant...AND keep all receipts for monies spent on your home.

[lina-mallows]

whoscloset- rest assured we have a very qualified accountant, in fact more than one.
The problem arises when rooms may serve as double duty.
Square footage is only part of the equation.
And, I have seen auditors actually get out their measuring tapes to assess the square footage of an area. I think you'll find, that unless you have a very small residence- using ONE bedroom and HALF a basement, to claim 1/3 of ALL your household expenses is likely a bit excessive.

Do you consider yourself to be a salaried employee of your business, or a commissioned employee? Is your business a Limited Company?

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/229/slry/wrkspc-eng.html
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/229/cmmssn/hm-eng.html

For either: for 2007 "You can deduct the part of your costs that relates to your workspace, such as the cost of electricity, heating, and maintenance. However, you cannot deduct property taxes, home insurance, mortgage interest or capital cost allowance."

Then again, another issue always arise in that you must be permitted to actually operate a business in your residence- not all municipalities permit this. So, if you can't legally operate a business under your residential zoning rules- how can you get a deduction?

whoscloset- It's the ALL in your definition that sets off the red flag, nothing more.
Not "ALL HOUSEHOLD EXPENSES" can be so prorated, and deducted- as you would have us believe.

[coxengines]

We have been audited several times over the last 15 years and it's largely up to the auditor and what case you can make.

We allocate a modest 525 square feet of our home for business and 15% of all associated expenses. Even though the tape measure did come out once LOL, we never have been challenged so far.

90% of vehicle costs for both our vehicles get expensed - passed every audit far (you need to keep a log).

Computers, digital cameras, phones, cell phones, office equipment, etc, etc are 100% business expensed - passed every audit as well. You just need to be honest with auditor when asked if one also uses some of the items for personal use. The answer is always "yes".

However, tax laws are ambiguous and subject to interpretation. Don't declare war on the auditor, go the extra mile in supplying him/her with documentation and helping him/her understand your business. It pays off as they are only human and face many of the same tax challenges that you do.

Xena

[pierrelebel]

"Even though the tape measure did come out once "

Same happened to me last year. The auditor actually measured the space allocated to my business before approving my occupancy cost allowance. .

[whoscloset]

I'm not too worried. If you saw just how much of my home was DEDICATED to my business you wouldn't be either. The space that is used is definitely not dual use. LOL

The point I was making is that I have always claimed my ebay income and not doing so is foolish in the extreme.

[fatdane]

When I was audited for income tax the auditor did not question the percentage that I claimed once he was on the property and saw my operation. I was claiming 1/6 th counting the basement that I operated in as 1 room out of 6. I think if I had been claiming 5/6th he would have had a problem.

The guy that did my audit was done in a half day. He found a fairly major goof in my book keeping regarding exchange rates, but since it applied to both US$ expenses and sales he saw that the govt was not going to get any extra money from me and might well end up owing me money. He did a close examination of sales and expenses for a month on each of my businesses, and he picked the month. Other than the exchange rate error he didn't find anything, and realized that the government would pay more in his wages than they would ever collect from me, so he was off to his next "victim".

[lina-mallows]

whoscloset- I am not claiming anything other, than honest sellers, like yourself (and others here), have nothing to hide. So why waste eBay's time, and resources trying to keep OUR information private?
For those of us without issues- why not simply ask for permission, and release OUR information accordingly?
(We came through our last audit in 1996/97. No issues- paid less than $15.oo- and were told to fid a good SUSHI restaurant beyond the 30km demarkation point. Under 30km is not deductible. Over 30, at -50%- without alcohol.)

[gifts_of_elegance]

I renovated my whole house in the past two years but I would never consider the cost a write off as business expense because it isn't. Makes no difference that I now have hardwood floors, new trim, and fresh coat of paint in the bedroom I use as an office, it was just as functional when it had shag carpet and old trim. You don't need a finished basement to store inventory. Only things that I consider as a business expense is the installation of shelving in five closets for delicate items, shelving space in our furnace room for shipping boxes and addition of security system. These are items we never would have needed if we did not have a home based business.

[lil-angel-gifts]

Good point gifts_of_elegance. Cosmetic things are not always necessary and they could be questioned in an audit.

It's hard though, because many of us who run legit businesses in our home still have customers/clients who stop in, or business people. I can't tell you how many times I have avoided having local business people or reps (even friends who want to see my work space) stopping in to my "place of business" to meet with me, because my "office" in the basement is horrendously dated, and a mess. I'm holding off dumping any $ into it, as we are hoping to buy a new house within the next 1-2 years, and I'd rather put the $ into that office.

I DREAM about my new, up-to-date & lovely office space. I think I'll feel much more "professional" with it too...

[whoscloset]

You don't need a finished basement to store inventory.

Unfinished basements are usually not considered part of the square footage of your home. The point I was making with that comment is that my entire basement is finished, with the appropriate permits, and is therefore considered part of the square footage of my house...both for re-sale value and tax purposes.

Makes no difference that I now have hardwood floors, new trim, and fresh coat of paint in the bedroom I use as an office, it was just as functional when it had shag carpet and old trim.

Whether it makes a difference to you or not is debatable. It does however, make a difference as to whether or not you can claim it as a tax deduction.

[gifts_of_elegance]

Whoscloset: The cost of cosmetic renovations would probably be considered tax deductible if it was open to the public.

When I was a contractor, I used my garage for storing material and YES, I included it in the square footage and no auditor disputed it. When I didn't have a garage, then the portion of my unfinished basement where I stored my tools and materials was allowable.

When I sold real estate, I still maintained an office in my home but it was NOT deductible because I had a place of business down-town.

[gifts_of_elegance]

angelsmiles123:
I started my internet business in an empty bedroom with an old kitchen table for my computer. Luckily it was a round table so I had a bit of room to write on. I used cheap plastic storage bins and those cheap plastic units with drawers. I worked like that for four years. Six months ago I got beautiful cherry furniture. An L shaped computer desk with a hutch, two matching filing cabinets that don't look like filing cabinets, a 42" plasma TV, a curio cabinet to display some of my Swarovski crystal and a Persian rug over the new hardwood floor.
I still wouldn't bring anyone in here. I work here, this is not a show-room and its nobody's business what goes on here.