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hobby to a business and tax implications

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Hi, my partner has recently been laid off from his full time job. He’s been a wood turner for many years and always had lots of interest in his work. He has a workshop on our property, we applied for an ABN for him to sell some pieces, it’s likely to be very small income of less than $5k a year but someone mentioned that we may have to pay some tax when we sell our house, capital gains tax? Now we are worried we did the right thing getting an abn for a small amount and may be far worse off. What tax implications do we need to consider moving the small hobby to a business? Is there a helpline where we can discuss the details of the business as a whole? Thanks
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ATO Community Support

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Hi @Kez2,

 

Thank you for getting in touch with us!

 

Firstly you really need to determine if your husband is actually running a Business or just a hobby there is information on this under Are you in Business? At the time you applied for the ABN there would have been initial questions to determine this, though you may want to read up on it again.

 

In regards to Capital gains tax implications when selling your home and general business advice about tax obligations, then we advised that you either speak with a financial adviser or Tax Agent.

 

Otherwise you can contact us on the number listed under Business Enquiries for further clarification.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Kez2,

 

Thank you for getting in touch with us!

 

Firstly you really need to determine if your husband is actually running a Business or just a hobby there is information on this under Are you in Business? At the time you applied for the ABN there would have been initial questions to determine this, though you may want to read up on it again.

 

In regards to Capital gains tax implications when selling your home and general business advice about tax obligations, then we advised that you either speak with a financial adviser or Tax Agent.

 

Otherwise you can contact us on the number listed under Business Enquiries for further clarification.