Tax on hobby income

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  • Dave A
    Site Caretaker

    • May 2006
    • 22803

    #1

    Tax on hobby income

    At what point does a hobby turn into a business?

    I know that if you happen to make the odd buck from a hobby, SARS is not interested as it would open the door to claiming all those expenses. But sometimes that hobby income can grow to a reasonable nett income.

    At what point would SARS decide you now need to declare hobby income as taxable income?
    Participation is voluntary.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
  • insulin
    Suspended

    • Feb 2009
    • 379

    #2
    I remember asking the same question. The answer was that the small business rule applies. I cannot remember the amounts so please just contact SARS and ask them what the minimal taxable amount for a small business is. Also to keep yourself out of trouble I recommend you pay in voluntary TAX thus avoiding any nasty comebacks from SARS...

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