Luke Chemies

And that's probably because you should be thinking about tax.

But in New Zealand, we don't have like a hard and fast business versus hobby number.

So that's where I think it gets really tricky as to, okay, do I need to declare this income and pay tax on it?

Now what I mean by that is, let's say we had a threshold number of, okay, if you make $5,000 from making scarves and selling them,

if you make $5,000 of sales or profit, whatever, that then you've got a business and you need to declare that.

So we don't have a number like that.

Now I'll teach you about GST later in this episode and people think that we do and sometimes people say, oh, I've got less than 10 grand worth of sales so I don't need to worry about anything tax related.

I'm like, where did that come from?

But that's a threshold or a number that they've come up with or they've learnt from somewhere, which again, it may not be accurate.

So there's no number to define whether you're in business and it's actually more of a situational type rule.

So we're going to explore what's a business versus a hobby because that's the ruling in this space.

And even if you Google IRD hobby versus business, there's a specific landing page that gets updated for this.

Is your hobby a business?

And you can go and read more information put out and it's actually got some examples which we might skim through if we've got enough time as well.

But my interpretation for it and my teaching is

is basically a hobby is done for fun, probably one-off or done very rarely.

You know, you might go and do some firewood once, make a few hundred bucks and go, shit, that was pretty good, and spend the money on the family.

The money's gone.

Happy days.

The IOD probably aren't going to come after you and be like, hey, you're running a firewood business.