Luke Chemies

Is it a hobby?

Well, if you're going to the market and selling some flowers out of your garden once every month and making bugger all money, I'd be probably going to go, okay, you've got a hobby there, like whatever.

But

I don't know for sure because someone at the ID could be like, no, no, it's more than six times.

It's definitely regular.

Therefore, you should have been paying tax on those profits.

So it is a bit of a tricky area.

However, a hobby, if it's truly a hobby, you don't have to pay tax.

That's what the rules allow for.

But like I said, this is where it does get tricky because if we go back to the IRD's website, the example of a hobby says selling things you make occasionally at markets.

Selling things that you make occasionally for enjoyment or fun to family and friends.

So I'm creating my scarves and I'm selling them to my family and friends, making a bit of extra money, doing that occasionally.

It's a hobby.

I don't have to pay tax.

if I'm doing the same thing but down at the markets, still a hobby, don't have to pay tax.

But what is the definition of occasionally?

And I don't know.

I'm not entirely sure

How the IRD would determine occasionally is if I just did six speaking gigs in the year, would that be occasionally?

Therefore, it's a bit of fun for me.