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tax and domain purchases

Discussion in 'Domain News' started by smee, Aug 29, 2011.

  1. smee

    smee Membership: Community

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    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.
     
  2. James

    James Membership: VIP

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    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...
     
    Last edited: Aug 29, 2011
  3. neddy

    neddy Membership: VIP

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    auDA Member:
    Yes
    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!).
     
  4. joe

    joe Membership: Community

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  5. snoopy

    snoopy Membership: VIP

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    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.
     
  6. snoopy

    snoopy Membership: VIP

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

    Designer Membership: Community

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    @James - my accountant recommended a Family Trust for asset protection and tax benefits.
     
  8. James

    James Membership: VIP

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    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 =)
     
    Last edited: Aug 30, 2011