Claiming domain purchases on Tax?

[morganp]

Hey everyone,

Just wondering if i was to purchase one or more domains at either netfleet/drop or from an individual can i claim that amount on my tax?

Domain amounts are in the mid to high $x,xxx.

If anyone can help me that would be greatly appreciated, obviously if i was able to claim these on tax id be more inclined to spend that amount on domains to enhance/grow my website portfolio.

Thanks,

Morgan

 

[DomainNames]

Yes of course you can claim them off your tax. Also register for GST and claim back the GST on your BAS if you qualify. example www.omg.com.au

 

[soj]

Any domain purchases I have made are classed as Asset purchases, not expenses. Contact an accountant and ask for their advice

 

[DomainNames]

Any domain purchases I have made are classed as Asset purchases, not expenses. Contact an accountant and ask for their advice

Yes they will be classed as Assets

 

[pacifier]

Any domain purchases I have made are classed as Asset purchases, not expenses. Contact an accountant and ask for their advice

Soj, interested to know if you depreciate them over a period of time?

 

[snoopy]

Soj, interested to know if you depreciate them over a period of time?

That varies, if I remember darkbluesea (was publicly listed) for example used to depreciate then decided not to after a few years. Would largely depend on whether the name is likely to fall in value or not I think.

 

[soj]

Soj, interested to know if you depreciate them over a period of time?

Nah I don't do any depreciation on them, I usually keep the income on the company down enough via Directors Fee's and the likes to not need to worry about it.

 

[Shane]

Keep in mind that you can only claim the expense against other business income. You cannot claim it against income from a salaried job.

 

[morganp]

Thanks everyone,

I will have to bring it up with my accountant, but thought you guys would probably know more about domain purchases than he would. Currently the online side of things around around 6 figure earnings per year so i am wanting to find a few things to cut down my annual tax bill.