Those who mostly sell - Do you claim business expenses on your taxes?

[jacal1]

I've usually broken even or lost money, but this year I stand to gain, having sold more value than I've spent. Do you claim this as a business and balance sales with costs, or as a hobby, or neither?

Can you do this under your own name as an individual?

 

[-REECE-]

I've usually broken even or lost money, but this year I stand to gain, having sold more value than I've spent. Do you claim this as a business and balance sales with costs, or as a hobby, or neither?

Can you do this under your own name as an individual?

Here's a site with some advice: http://www.avivadirectory.com/domain-law/

Other than that, consider the amount you're making.

Where I live, you can make 8k profit before you have to declare it. If you make more than the cap, it's definitely worth speaking to a lawyer or knowledgeable accountant about how to proceed.

 

[jacal1]

Thanks Reece - my goal is to move beyond the capital gains route that I've used before because in that case I can only write off costs associated with that particular domain. I'm hoping to subtract my costs associated with all of my domaining activities from all my profit...and I thought maybe if I called it a business?

Thanks for the advice. I'll check out the link.

 

[PowerUp]

Thanks Reece - my goal is to move beyond the capital gains route that I've used before because in that case I can only write off costs associated with that particular domain. I'm hoping to subtract my costs associated with all of my domaining activities from all my profit...and I thought maybe if I called it a business?

My goal is directly opposite of yours because in my country, capital gains are not taxable.