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question Question about tax return

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kite26

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I live on an EU country.
My main job is not domaining.
I am doing domaining as individual.
I asked my accountant and he said that the problem is that I don't own a company nor this is my job (officially), so I don't have to submit. Furthermore, I have expenses too (renewals, new acquisitions, etc) and some companies simply don't give invoice (GD)
But I still have concerns. Do I have to submit my domaining income to my annual tax return? Members from EU, especially, how you handle this? It's a question that I wanted to make much time ago. Maybe Dan is not good idea for an EU individual?
 
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Let me ask my accountant I’ll get back to you
 
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I thought tax rates, laws etc are set by individual governments, not the EU....so unless you get advice from someone in your country it could be wrong

Go and get a second opinion from another accountant, they normally offer an initial free 30/60 min consultation (at least here in the UK they do)
 
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I thought tax rates, laws etc are set by individual governments, not the EU....so unless you get advice from someone in your country it could be wrong

Go and get a second opinion from another accountant, they normally offer an initial free 30/60 min consultation (at least here in the UK they do)
I normally keep my invoices on a folder (except GD). I will try to ask another accountant as you mentioned.
 
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I asked my accountant and he said that the problem is that I don't own a company nor this is my job (officially), so I don't have to submit. Furthermore, I have expenses too (renewals, new acquisitions, etc) and some companies simply don't give invoice (GD)
But I still have concerns. Do I have to submit my domaining income to my annual tax return? Members from EU, especially, how you handle this? It's a question that I wanted to make much time ago. Maybe Dan is not good idea for an EU individual?

I don't live in the EU, but I have to say that would be a great workaround to not pay taxes. You could basically do business under your own name, not register as a company, and not declare that income.

Not only does it not have to be declared as income, but you can also deduct related expenses? That would be a massive loophole in tax policy.

For any country that charges income tax, I am skeptical that would be the case unless it was for a very small amount of money.

Brad
 
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I don't live in the EU, but I have to say that would be a great workaround to not pay taxes. You could basically do business under your own name, not register as a company, and not declare that income.

Not only does it not have to be declared as income, but you can also deduct related expenses? That would be a massive loophole in tax policy.

For any country that charges income tax, I am skeptical that would be the case unless it was for a very small amount of money.

Brad
@bmugford Thank you very much mate. However, i will keep saving all the invoices, you never know. What you said, it's basically what my accountant said to me. Is Afternic the best bet for EU sellers or other marketplaces like Dan is the same thing?
 
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I dont know eu laws, but in USA, i report it as annual income. Simple area on tax form that says additional income. Then i use the purchases at the registrar to counter it as tax deduction. :)
 
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If your accountant can't answer the question then they're not a proper accountant.

Generally if you're making money out of it as more than a hobby or hobby levels of income then they'll want a cut of it for sure!! General rule of thumb...

I doubt that "saving all of the invoices" is proof in a court of law that you were going to declare your profits.

The main differentiator that I always come back to is whether you are "trading" or not. If you are buying things to sell for a profit then you're trying to make a profit... So at some threshold you will sure as hell be required to declare the amount, otherwise everyone would be doing it and they wouldn't be getting their cut!!
 
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I dont know eu laws, but in USA, i report it as annual income. Simple area on tax form that says additional income. Then i use the purchases at the registrar to counter it as tax deduction.

If you have held your domain name for over a year, you should report your domain name sales as you would report a stock sale, as capital gains. Capital gains is taxed at a lower rate than income. Capital gains lets you deduct the cost and other expenses of the domain names that you sell.
 
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I heard things like,.. USA corporation (a deepstate company) went bankrupt, and can't collect income taxes etc,.. same for UK,
but don't trust me on this.
 
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I heard things like,.. USA corporation (a deepstate company) went bankrupt, and can't collect income taxes etc,.. same for UK,
but don't trust me on this.

Nah, that is basically just sovereign citizen quackery.

The IRS is fully operational. Mess around with taxes and you will eventually find out.

Brad
 
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If your accountant can't answer the question then they're not a proper accountant.

Generally if you're making money out of it as more than a hobby or hobby levels of income then they'll want a cut of it for sure!! General rule of thumb...

I doubt that "saving all of the invoices" is proof in a court of law that you were going to declare your profits.

The main differentiator that I always come back to is whether you are "trading" or not. If you are buying things to sell for a profit then you're trying to make a profit... So at some threshold you will sure as hell be required to declare the amount, otherwise everyone would be doing it and they wouldn't be getting their cut!!

Not anymore come the 1st of Jan… when you hit that $600 a year transaction it’s now being reported to the IRS where you will have to start reporting everything.

In case anyone knew it use to be up to $20k a year
 
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Not anymore come the 1st of Jan… when you hit that $600 a year transaction it’s now being reported to the IRS where you will have to start reporting everything.

In case anyone knew it use to be up to $20k a year
When you say not anymore, which bit are you referring to?

Cheers
 
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“Generally if you're making money out of it as more than a hobby or hobby levels of income then they'll want a cut of it for sure!! General rule of thumb...”


Just this part
 
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“Generally if you're making money out of it as more than a hobby or hobby levels of income then they'll want a cut of it for sure!! General rule of thumb...”


Just this part
Thanks. I think what you've said pretty much backs up that statement. 😃
 
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Not anymore come the 1st of Jan… when you hit that $600 a year transaction it’s now being reported to the IRS where you will have to start reporting everything.

In case anyone knew it use to be up to $20k a year
Biden created a new law effective January 2022 so he can get more tax money from the citizens for his stupid spending.
All the transactions even from Paypal, Venmo, Zelle....
 
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Biden passed create the new law effective January 2022 so he can get more tax money from the citizens for his stupid spending.
I know sucks for people who have side hustles that just make a few bucks here and there… I definitely turn off a few side hustles because of this.
 
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They track even from Zelle or Venmo and Paypal which many people used to transfer the money between friends and family members.
Should change the name from USA to CSA (Communist States of America).
 
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They track even from Zelle or Venmo and Paypal which many people used to transfer the money between friends and family members.
Should change the name from USA to CSA (Communist States of America).
According to PP F&F transactions will not be reported… I might be using only that however I still don’t trust them.
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Whatever the case but lower the number down from $20K to $600 is too much.
How the hell do they know when the transaction is business or personal?
I can pay all the domain names here paypal F&F.
He paid too much money for pharmaceutical companies for vaccines (so he can get kickback) and now he wants to rib off the citizens to pay back.
Sorry for my ranting about this dumb ass President. I stop here.
 
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Whatever the case but lower the number down from $20K to $600 is too much.
How the hell do they know when the transaction is business or personal?
I can pay all the domain names here paypal F&F.
He paid too much money for pharmaceutical companies for vaccines (so he can get kickback) and now he wants to rib off the citizens to pay back.
Sorry for my ranting about this dumb ass President. I stop here.
Yeah the idiot really wanted to track $600 transactions in peoples bank accounts too…. Glad they finally backed down from that proposal however I’m sure they’re not done trying.
 
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I went to my accountant today. All good until I brought up my income from selling (3) domains in 2021. All registered in 2021. I registered another roughly 300 domains all this year. My domain reg purchase total was around $3200. My total expenses (iPad purchase for logos), BB, Flippa GD fees) were about $4500. My income was 2900. My question is this: Since my goal is to sell as many domains as possible, as fast as possible, would I use Schedule C? And if so, would at least the 3200 in reg fees less the income (sales) be my taxable income? Could I "write off" the iPad and other small platform fees/costs? I want to get this foundation right for coming years and continued "success." For now my return is on hold until the correct decision is learned. Accountant's first time with a domain side hustler. Please help. Thank you.
 
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I went to my accountant today. All good until I brought up my income from selling (3) domains in 2021. All registered in 2021. I registered another roughly 300 domains all this year. My domain reg purchase total was around $3200. My total expenses (iPad purchase for logos), BB, Flippa GD fees) were about $4500. My income was 2900. My question is this: Since my goal is to sell as many domains as possible, as fast as possible, would I use Schedule C? And if so, would at least the 3200 in reg fees less the income (sales) be my taxable income? Could I "write off" the iPad and other small platform fees/costs? I want to get this foundation right for coming years and continued "success." For now my return is on hold until the correct decision is learned. Accountant's first time with a domain side hustler. Please help. Thank you.
Try a different accountant. Sounds like you're making things up a bit and you probably shouldn't be.
 
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