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Tax question re: foreign income

Discussion in 'Beginner's Lounge' started by john5, Oct 31, 2018.

  1. john5

    john5

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    hi all,

    just a question on a specific type of foreign income, i own a few domain names, and have them "parked" on a us-based parking platform, the platform collects parking revenue for me, in usd, and generates reports which enable me to see what im earning, even daily ... sometimes it's only a few us cents, often days go by with nothing at all, the way the platform works though is i only receive funds into my paypal account whenever i ACCUMULATE about usd 10 worth of revenue ... question is, do i report to ato (converting to aud amount) only for the dates i actually receive a payment (maybe twice a year at most), or do i have to track every time i "earn" the us at it's source, sometimes 1 us cent worth ... thanks
     
    Darc Knight likes this.
  2. willy1111

    willy1111

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    Look up cash accounting and accrual accounting.

    Cash accounting is when you are paid. Given your smallish size I would say this would be the way to go.

    Accrual is when you earn it, but I think it has to be a decent size business like $2m plus to use accrual.

    Most use cash...as in when they are paid.
     
    Skate and john5 like this.
  3. brisman

    brisman

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    For small amounts, you could justify using the monthly exchange rate, and just doing monthly calculations under cash accounting for each time you receive money in your accounts.
     
    john5 likes this.
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