Taxation Question
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No.
Sorry, I should elaborate.
The way I understand the laws as far as NSW goes is that anything you find while fossicking is yours tax free.
You can do with it what you please.
Sorry, I should elaborate.
The way I understand the laws as far as NSW goes is that anything you find while fossicking is yours tax free.
You can do with it what you please.
Can I claim the money I spent on my detector as a tax deduction?
condor22
Mike
The only issue selling Gold is, if you are on a Centrelink payment like pensioners;
If by selling enough gold your bank balance goes over the asset limit applicable.
However if on Newstart, the amount of money you are allowed to have is basically sod all.
So cash sales of modest nuggets will be the way to go, if you were to try selling a "strike it rich type nugget" good luck getting cash......lol
If by selling enough gold your bank balance goes over the asset limit applicable.
However if on Newstart, the amount of money you are allowed to have is basically sod all.
So cash sales of modest nuggets will be the way to go, if you were to try selling a "strike it rich type nugget" good luck getting cash......lol
Profits from sale of gold found as a hobby attract No Tax.
You are not able to claim deductions for expenses from gold prospecting as a hobby.
The laws are like this because mostly gold prospecting as a hobby is a financial loss making exercise.
Take my example i forked out $10,700 for a GPZ 7000 in March and consider myself VERY LUCKY to have found around $3800 dollars in gold for 36 days of prospecting swinging the coil 7 to 8 hours per day. I would hate to think of what my true expenses are when you add in fuel and wear and tare on my car. I don,t count food as i would still eat if i stayed at home.
Also i did spend some nights in Motels.
Some years ago the ATO looked into taxing gold sales to hobbyist prospectors and were advised that allowable deductions against prospecting would excede revenue generated by any proposed taxes and there was a significant risk that non prospecting people like fisherman would get miners rights and dodge the books to get false tax deductions.
I also recall the ATO saying if a prospector found gold and the spot price on the day was say $800 AUD per ounce if they decided to sell say 3 years later at $1150 an ounce that they would be subject to capital gains tax on the $350 per ounce price rise, as far as i know they have never pursued this? Best to keep quiet about it as i know behind the scenes the evil government is looking to increase a significant number of taxes?
You are not able to claim deductions for expenses from gold prospecting as a hobby.
The laws are like this because mostly gold prospecting as a hobby is a financial loss making exercise.
Take my example i forked out $10,700 for a GPZ 7000 in March and consider myself VERY LUCKY to have found around $3800 dollars in gold for 36 days of prospecting swinging the coil 7 to 8 hours per day. I would hate to think of what my true expenses are when you add in fuel and wear and tare on my car. I don,t count food as i would still eat if i stayed at home.
Also i did spend some nights in Motels.
Some years ago the ATO looked into taxing gold sales to hobbyist prospectors and were advised that allowable deductions against prospecting would excede revenue generated by any proposed taxes and there was a significant risk that non prospecting people like fisherman would get miners rights and dodge the books to get false tax deductions.
I also recall the ATO saying if a prospector found gold and the spot price on the day was say $800 AUD per ounce if they decided to sell say 3 years later at $1150 an ounce that they would be subject to capital gains tax on the $350 per ounce price rise, as far as i know they have never pursued this? Best to keep quiet about it as i know behind the scenes the evil government is looking to increase a significant number of taxes?
Yeah some how I don't think my gold finds over 2 months being under 1g will even put me close to the threshold.
KarlS
Karl
condor22 said:
I whish to have a this kind of problem,!
Karl
condor22
Mike
As a pensioner, so do I !!!
Chuky boy said:
I use my detector to find buried underground cables
That's logical, but finding bottletops and pulltabs is a bit different?!
Jaros
Jaros
Mmm, how close are you. Get 1 for him and 1 for his apprentice??
I mean ,would he arrange a deal like that for you??--an him of course if he was interested in the hobby--it would help his occupation .
Jaros
Jaros
DropBear
Tim
Simply
If it is your business - Yes
If it is a hobby - No
Can you claim thing - Yes if it is your business
If it is your business - Yes
If it is a hobby - No
Can you claim thing - Yes if it is your business
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Horse racing is the best example.
I own a horse, it wins the Melbourne cup, I train the horse, but I also work.
A hobby, no tax. End of story
But.....
I don't work, even if I'm not claiming benefits, it's deemed a full time job training my horse. Winnings are now taxed, but, I can now claim deductions.
ATO will only come after you IF they think they will get their costs back on their time.
Not a good idea to sell a lot of gold at once, because you will be looked at for money laundering via the new taxation link on gold exchanges, especially if recently divorced, or have a overdue tax liability.
Gold is a good way to make cash legit.
I own a horse, it wins the Melbourne cup, I train the horse, but I also work.
A hobby, no tax. End of story
But.....
I don't work, even if I'm not claiming benefits, it's deemed a full time job training my horse. Winnings are now taxed, but, I can now claim deductions.
ATO will only come after you IF they think they will get their costs back on their time.
Not a good idea to sell a lot of gold at once, because you will be looked at for money laundering via the new taxation link on gold exchanges, especially if recently divorced, or have a overdue tax liability.
Gold is a good way to make cash legit.
