Hobby or Business

[88GreenVN]

Just a thought about hobby v business

I've been messing around in my shed for years and years making all sorts of stuff needed at the time from roll cages to full on fit up stock cars plus what ever was had to be fixed around the place, cars or house.

Plus I sell stuff on Ebay and use the shed for this too.

I call it a hobby, to play with all the stuff in my shed - escape the house after tea

Over the years I've made stuff that others want to buy and now sell 4 or 5 things every othe week. I make good pocket money from this activity. As an hourly rate = poor income, but I enjoy my time in the shed and glad to be able to do the things I do.

Now the question is - Is this a hobby or a businees
My answer is that it's a hobby because I choose to make the stuff and dont have too, if it was a business I would "have to do it"

This question was asked in chat box last night........ and made me think for a while on the issue.

[TVR-190]

imo its a hobby with benefits. your doing something you enjoy and making some money on the side from it, you sound like you enjoy doing it. the moment you start doing it purely for money its business

[danja]

Hard to say, but I think I agree with TVR, it's a hobby with benefits

Wether the ATO would see it the same way however.. well that's another question

[gopher]

Am I in business?

[minux]

There is no simple answer...Kevin Rudd would say yes its a business, simply because they need every dollar they can get to pay off what looks ot be 300bill+ of deficit

[hingo1983]

Yeah but Kevin probably thinks a 5 year old selling their lunch is a business.

[Rossbx]

I would hinestly call it a hobby. Do you have an ABN? If not, then it is a hobby. Just don't tell the ATO about it and you'll be fine

[stocky]

I would hinestly call it a hobby. Do you have an ABN? If not, then it is a hobby. Just don't tell the ATO about it and you'll be fined

you left a letter off there haha

[maginoodle]

One of my superiors at work breeds and sells horses as a hobby. He puts down any sales on his tax return as well as the cost to keep them. He said there is a non taxable portion separate to the 6000 or whatever it is on a normal wage and anything after that limit gets taxed.

[Amped]

if it's your main source of income it's a business if not it's a hobby

[88GreenVN]

I do have a full time job

[Rossbx]

you left a letter off there haha

Not Good huh? It is like my computer: Intel inside, Idiot outside LMAO

It should have read: I honestly think it is a hobby. Do you have an ABN? If not, then it is a hobby. Just don't tell the ATO about it and you will be fine.

apologies for my bad grammar and spelling

[minux]

if it's your main source of income it's a business if not it's a hobby

What a load of crap, it does not need to be a main source of income to be a business...

[Ozzie]

I agree.
Its more of a hobby because you not only enjoy doing it but you can stop it at any time.

Whereas GrillzArt is a business with an ABN, I have to pay tax on it and do all the BAS shit to go with it.
I dont want to really do it and I dont enjoy doing it but it makes $$$

[Not_An_Abba_Fan]

It's the same with mine. I have an ABN, but I'm not registered for GST. I call mine a hobby as what I make can easily be eaten up in overheads if I chose to declare it. I just don't think the extra paperwork and heartache warrants making it a 'business'.

[michaelw]

I faced this same question with my ebay emipre with the aldl cables. Looking at the ATO website the question that seems most important is "is it viable?" ie could you live off it? My ebay empire is for beer money so it fails the viability test.

Look at the hours you put in and the 'profit' you get out, chances are if you were doing it just for money you would be better off getting a second job.

Mike

[Ozzie]

Yeah thats true.

Im making enough off it to live on and I also work for KFC. The money from KFC is pocket money compared to my business. Its not worth me working for anyone else at the moment but things could change...
Most business's go brupt within the first year or so.

[Pub247]

Hobby for sure i make things mainly modified or custom cars parts if i choose to do something for someone its more for the chance to something new learns things and something i enjoy what i charge vesus the time i put in would pay me about $5 an hour no way that is worth it. If i was a business the money i'd have to charge would deter people from getting me to make something.

I suppose what I'm trying to say is if your doing for yourself its a hobby if your doing it to make money its a business

[gslrallysport]

Am I in business?

Quoted for accuracy...