question Question about tax return

[kite26]

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?

 

[bmugford]

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.

Any legitimate business related expenses are an expense.

Domains are just the product. It should not be that confusing for a qualified accountant.

In general the formula is -

Total Income - Total Expenses = Profit or Loss

@Culminant Domain I sent you a DM.

Brad

 

[Culminant Domain]

Try a different accountant. Sounds like you're making things up a bit and you probably shouldn't be.

What in anything I wrote appears made up? And you think there's a bunch of people in my small city of 7000 who are domaining AND using my CPA?

 

[MadAboutDomains]

What in anything I wrote appears made up?

You said you went to your accountant and then you're asking a domain forum for answers to tax questions. Find an accountant that has the answers you require, it is the only way. Otherwise you're just going to make it up as you go along.

And you think there's a bunch of people in my small city of 7000 who are domaining AND using my CPA?

It doesn't really matter... will they think "nobody else does it" is a good enough excuse to get it wrong? That's a question only that you can answer.

 

[Culminant Domain]

You said you went to your accountant and then you're asking a domain forum for answers to tax questions. Find an accountant that has the answers you require, it is the only way. Otherwise you're just going to make it up as you go along.


It doesn't really matter... will they think "nobody else does it" is a good enough excuse to get it wrong? That's a question only that you can answer.

I appreciate your thinking to take the time, but I’m not going to go look for a new accountant for my fledging hobby when my current one has done my business taxes for several years; he also does payroll for fire/police, etc. He is excellent and sought-after. I wasn’t surprised that he didn’t have definitive experience. And if you read closely, you will see that I said my taxes are on hold until I feel good with which way I decide to go (kinda tricky otherwise there wouldn’t be thread(s).) The last fifteen minutes were spent discussing my domain income. As he had paychecks to sign and then church, we ran out of time. He, like any CPA, is EXTREMELY busy right now. I figured I’d come back to NamePROS for clarity, and through a generous and straightforward DM, I got my answer. Thank you again for yours.

 

[MadAboutDomains]

I’m not going to go look for a new accountant for my fledging hobby when my current one has done my business taxes for several years; he also does payroll for fire/police, etc. He is excellent and sought-after.

Ask him to find out the answer for you then.

Unfortunately nobody can give you tax advice unless they know what they're doing, cause getting it wrong can be costly.