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tax and domain purchases

smee

Top Contributor
I'm sure I read somewhere on this forum that members were able to claim domain purchases as a tax deduction. Not sure how that works as the advice I had in the situation I put to my tax person was:

1. - set up a family trust
2. - set up a new website
3. - purchase an existing domain name in the thousands of dollars

and I was told I could not claim the purchase of the domain name as a tax deduction and that the domain name purchase would be seen as a capital gain/loss if and when the website was sold.

While I realise members are not tax experts, I'm certainly interested in your thoughts on this.
 

James

Top Contributor
I would also question the idea of setting up family trusts with domains, I am no tax expert yet I read recently they are really trying to crack on this type of thing.

Couldn't a better way to do business be work out to start up some type of start up business start up and run a high priced domain via the business you make??? I dunno never done it LOL...

But really the Government is cracking down on every thing, you can not even claim entrepreneurs tax-off set any more, they replaced it with the "New Car buyers tax bonus", which you can not even get...article: http://www.startupsmart.com.au/fina...-mp-hits-out-at-entrepreneurs-tax-offset.html

Why be an entrepreneur in Australia any more Labor will just cut you down...
 
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neddy

Top Contributor
While I realise members are not tax experts, I'm certainly interested in your thoughts on this.

There are many ways to structure your tax arrangements - particularly for professional domainers. Some of us even put "keepers"
into S/M Superannuation Funds.

I would suggest that you seek out other opinions from other accountants.

Having said that, I might seek out an accountant to write a "guest article" on the subject. Obviously it will only be a "generalised"
article (you know the sort of disclaimers they all give!).
 

snoopy

Top Contributor
I'm sure I read somewhere on this forum that members were able to claim domain purchases as a tax deduction. Not sure how that works as the advice I had in the situation I put to my tax person was:

1. - set up a family trust
2. - set up a new website
3. - purchase an existing domain name in the thousands of dollars

and I was told I could not claim the purchase of the domain name as a tax deduction and that the domain name purchase would be seen as a capital gain/loss if and when the website was sold.

While I realise members are not tax experts, I'm certainly interested in your thoughts on this.

The advice sounds reasonable to me. Tax deductions would generally be for reg fees. It might be possible to write of the value of a domain name, but the basis of that is that it is a depreciating item.
 

snoopy

Top Contributor
I would also question the idea of setting up family trusts with domains, I am no tax expert yet I read recently they are really trying to crack on this type of thing.

A large %, possibly even most private businesses in Australia are setup this way.
 

James

Top Contributor
A large %, possibly even most private businesses in Australia are setup this way.

But with domains is the question isn't it, not with a family business.

Like I said I don't know as I am not an accountant, I wouldn't take my advice all I know is from what I read in financial review and on start up sites and it is evident that we have been hit
hard recently with the govt stopping many thing.

Example:

http://www.businessspectator.com.au...s-trusts-report-pd20110817-KTRAC?OpenDocument

But yeah this is an area i need to investigate too...Will ask my accountant =)
 
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