Hi Japan Finance oracles
A point I’m slightly confused on is the exact definition of what can be included as 事業所得 and what can’t and has to be 雑所得. I had a short free initial meeting with an accountant and he told me roughly 事業所得 is earned in the course of doing business, but if what I’m doing looks a lot like a small 副業 where in a ratio of both money earned and time spent to my full time job would be a sort of ratio like 8:2 or 7:3, and it did not appear to be something I was doing to provide myself a living (?), then it would be hard to justify as that and would better suit 雑所得. That seemed at odds with which I had read in places including here before unless I am mistaken.
On top of that he also hit me with some bad news that if it -was- miscellaneous income I could offset only that same miscellaneous income with the costs incurred in the side job but I could -not- adjust the tax on 給与所得 from my full time job with it, however I could have combined both income streams and done that were it 事業所得.
To try to give some insight into my situation imagine I have a full time job 9-5 and this is my unrelated side business restoring and selling classic cars which I work on during the weekend, for which I submitted a 開業届 and intend to submit the blue form for. I’ve already paid an extortionate painting and interior contractor to do their bit of the job, have a virtual office and website etc etc but I’m still working on the engine etc myself which might not be done until next year so I’m not expecting to be be able to sell it soon. While my income from this side endeavor may not meet the test of ‘I’m doing this to eat’ yet by the looks of it, and in fact is currently 0, the expenses already paid certainly do and I’m well in the red so it would really help me out if I could balance some of the losses out against my tax paid on my other income.
Is my understanding of his explanation correct, and I just can’t, or is there any way I can do this better?
by CommerceOnMars69