Tax question re: foreign income

[john5]

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

 

[willy1111]

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

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.

 

[brisman]

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.