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| Parking & Traffic Monetization Discussion about domain parking and other methods of earning income from domain traffic. |
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| | #28 (permalink) |
| Account Closed Join Date: May 2007 Location: Wyoming
Posts: 428
![]() ![]() ![]() ![]() | There's two good old radio shows on this topic by top domain attorneys over at Monikers WebMasters Radio. The old shows are available to listen to free. It seems to me that the laws are changing. Virtually nothing is cut and dry IMO. Most accountants don't really know says one radio show that stipulates we have to enlighten them. On WebmasterRadio.fm every Wednesday @ 7 p.m. ET Listen to Archives shows for top legal advice IMO. Paul
Last edited by Psych101; 11-25-2007 at 01:38 AM.
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| | THREAD STARTER #29 (permalink) |
| Senior Member Join Date: Jun 2007 Location: At home
Posts: 2,026
![]() ![]() ![]() ![]() ![]() ![]() ![]() | I have heard that you can donate domain names and write it off. I was told that you could not write off no more than you paid for it but I wonder if the name has a certified appraisal from an accredited domain registrar that was more than you paid for it if that would help? It will be between January1st and 5th before I will know exactly how all this is going to play out.
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| | #30 (permalink) | ||||
| NamePros Webmaster ![]() ![]() ![]() Join Date: Feb 2003
Posts: 12,930
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????: NamePros.com http://www.namepros.com/parking-and-traffic-monetization/377342-legal-tactics-reduce-irs-tax-owed.html Might also want to consider prepaying for your dedicated server or other business expenses. | ||||
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| | #31 (permalink) | ||||
| NamePros Member Join Date: Apr 2007 Location: Texas
Posts: 118
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????: NamePros.com http://www.namepros.com/showthread.php?t=377342 The same would hold true for a diamond broker who finds a $1,000,000 diamond while on vacation in Arkansas, and then later loses it or sells it for one dollar. If he paid nothing for it, he can deduct nothing for it (except diamonds are insurable, but I don't know about domain names in the event you "lose" or misplace one). But of course if he paid $1 million and then sold it for a dollar, that is a different story; he would have deducted what he paid for it on his income taxes as a business expense during the year he purchased it. Actually, to donate a domain name might be less advantageous of a write-off than keeping it and having it classified as an actual business expense because many charitable contributions are allowed only 50% of the amount of the donation. Keeping it simple is always best. Once I paid my CPA $75.00 to amend my tax return which netted me an additional $50.00 refund. The IRS and I both lost on that one, but at least my CPA was happy Sometimes you can find good answers at www.irs.gov.
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| | THREAD STARTER #33 (permalink) | ||||
| Senior Member Join Date: Jun 2007 Location: At home
Posts: 2,026
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????: NamePros.com http://www.namepros.com/showthread.php?t=377342 I guess you could compare your diamond reference above in the same way...Let's say you buy a diamond at an auction or from a private seller for $1 or a $1000 and later have one or several certified appraisals of 30,000 Then you for what ever reason decide to donate the diamond to an interested diamond organization for the appraised amount...What's the difference except that one is tangible?
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Last edited by DnPresident; 12-26-2007 at 06:10 PM.
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| | #34 (permalink) | ||||
| Electrifying Guy ![]() Join Date: Sep 2003
Posts: 4,749
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????: NamePros.com http://www.namepros.com/showthread.php?t=377342 or anywhere else? You know, just to give general ideas but not necessarily a specific or so like some lawyers do. | ||||
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| | #35 (permalink) | ||||
| NamePros Regular Join Date: Jun 2007
Posts: 458
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from taxes, unless you are ready to go to court with IRS to prove the value,They in fact have even cracked down on the donate a vehicle programs for the very same thing. | ||||
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| | THREAD STARTER #36 (permalink) | ||||
| Senior Member Join Date: Jun 2007 Location: At home
Posts: 2,026
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| | #37 (permalink) | ||||
| NamePros Regular Join Date: Jun 2007
Posts: 458
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????: NamePros.com http://www.namepros.com/showthread.php?t=377342 correct me If i am wrong but this is the way i understand it | ||||
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| | #38 (permalink) |
| NamePros Regular Join Date: Jan 2007 Location: New York City
Posts: 263
![]() | Tax Expert Dialougue Is there anyway to get "an expert" to come here on NP to have a discussion with us on the topic? Maybe we can all submit questions for him which he can reply maybe in the chat room? Thoughts? |
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| | #39 (permalink) |
| Senior Member Join Date: Dec 2005 Location: new England
Posts: 2,115
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | I park most of my domain names with parked, and you have to file a W-9 to get your domain income from them. THe w-9 is basically used by independent contractors to report earnings. Even if you file the W-9, you need to make more than $600/year on each W-9(maybe you have multiple businesses/work you did with different entities) for you to pay any income taxes on it. I haven't made up to $600 in parking income, so i doubt i will owe the IRS part of my domaining income.
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| | #40 (permalink) |
| NamePros Member Join Date: Apr 2005 Location: Nevada, USA
Posts: 185
![]() ![]() | Did you know? Did you know that if you are going to sell a portfolio of Domains or a single domain for a large amount (Over $20,000) you can do the following? Create a LLC Put the domain/s in the LLC Sell the LLC as a whole And guess what.. your tax liabilities have just be cut in half. |
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| | #41 (permalink) | ||||
| NamePros Member Join Date: Sep 2006
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| | #42 (permalink) | ||||
| NamePros Member Join Date: Jan 2008
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| | #43 (permalink) |
| NamePros Regular Join Date: Jun 2007
Posts: 458
![]() | This link to IRS website is for agents who are investigating web based businesses, I finally found something from them backing up the claim that (domain brokers) I think the irs treats people who reg/buy names and sell them for a profit are called domain brokers not the same use we domainers refer to as brokers. if you read in the question and answer section at the bottom domain brokers income is tentatively treated as Capitol, which means to me if reg is over a yr then long term capital gains would apply, this is intersting reading for anyone with a web business I am not sure if I am reading it right though because it is called capital and you can amoritize see bottom What domain names have been registered either by you or on your behalf? What domain names do you have control over? Please include the date of registration and the name of the registrant. Explanation - The domain name is the web site address used to find the site on the Internet. As a revenue agent, you already know the importance of conducting a tour of a business. If you were auditing the XYZ chain of bookstores, you would look to see the addresses of the separate bookstores, how many cash registers each had, etc. Each web site is just like a separate bookstore in the physical world with a separate cash register. In the world of electronic business, each domain name gives the taxpayer a storefront with its own unique cash register. Identifying the number of web sites a taxpayer has is no different than trying to identify all the possible business sites or cash generators on your tour of a more earthbound business. Domain name information can be obtained from InterNic. InterNic is the directory service under contract with U.S. Government to register and track domain names. InterNic’s registry includes the name, address and phone for the registrant, the billing and technical contact points, the host site name and its Internet Protocol (IP) address. Domain names may be acquired from domain name brokers. Third party domain name brokers gang register domain names with InterNic for a nominal fee on the speculation that the name may appreciate in value. The resale value may exceed several hundred or even several thousand dollars. These names are tentatively believed to be capital in nature with the cost being amortizable. ????: NamePros.com http://www.namepros.com/showthread.php?t=377342 http://www.irs.gov/businesses/small/...141491,00.html
Last edited by fatter; 01-17-2008 at 12:35 PM.
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| | THREAD STARTER #44 (permalink) |
| Senior Member Join Date: Jun 2007 Location: At home
Posts: 2,026
![]() ![]() ![]() ![]() ![]() ![]() ![]() | Advertising is 100% deductible which will help me a lot.. I found this link informative http://www.kiplinger.com/features/ar...taxopedia.html
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| | #45 (permalink) | ||||
| Senior Member Join Date: May 2006
Posts: 1,268
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????: NamePros.com http://www.namepros.com/showthread.php?t=377342 Schedule 6, para 28 of the ITA 1967 states that ( I can't remember the exact words but it goes along like this) .... income accruing from outside the country and received in the country is exempted from tax. So basically my parking and domain income is exempted from tax. WOOHOO.
Last edited by PowerUp; 02-18-2008 at 12:42 AM.
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| | THREAD STARTER #46 (permalink) | ||||
| Senior Member Join Date: Jun 2007 Location: At home
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| | #47 (permalink) | ||||
| Senior Member Join Date: May 2006
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| | #48 (permalink) |
| New Member Join Date: Feb 2008
Posts: 3
![]() | Sedo 1099-misc Hi, I received from Sedo 1099-misc in which Sedo listed in box 9 'payer made sales $5000 or more of consumer goods etc..' . Domains are not consumer goods , right ? I went directly to irs office and they never heard about selling domains or what is and which forms to use to file income taxes . One irs agent told me..box 9 is schedule c... but this is for business and in irs booklet is qoute like ..dont use schedule c if you selling ocassionallllly/ or sporadic... ????: NamePros.com http://www.namepros.com/showthread.php?t=377342 Second irs agent over phone have not idea also . Turbotax people , spoke to few 'tax pro ' and got different answers and forms , hrblock people, have no clue . Can anyone who already filed taxes , tell us how they reported sales of domains and which form, schedule d or schedule c or else ? It is shame for irs.gov where is listed many type of incomes to report such as//illegal sales of drugs, bribery, if you stole , etc but no word about domains . It is 21 st century and we have catch 22 here . Also , big firm like Sedo should explain people where and how to report income from sales . I think is capital gains , as many of us, but it is important what irs examiner think . One examiner can say 'ok' second one 'wait a minute ..' If someone filed in 2006 , please tell us how you did it . |
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| | #49 (permalink) | ||||
| NamePros Regular Join Date: Jun 2007
Posts: 458
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Part of the problem with your situation is sedos 1099 by putting over 5k in goods they may have messed you up for filing schedule d, IRS has not determined a black and white answer yet because there is little case law to support a specific way of claiming sales. The irs gave me the same answer as you if you sell a few names and it isnt your main business to flip domains you can file the schedule D. long term capitol gains if owned for more than a year and treat it just like buying a stock low and selling high, if owned less than a year then short term capitol gains. I beleive the long term capital gain is 15 percent for most people. which isnt bad. But being sedo put 5k in sale of goods block, that is the second way to claim domain sales on a schedule C. which treats domain selling as your primary business, just like a retail store outlet buying items wholesale and selling at a higher price. These are just there recomendations of the 2 ways to report income. There is a 3rd way they told me about that is if you actually considered your name a brand/TM and it was your main business and it was sold then it could be treated as property sale like selling a trademark/license etc You might call IRS and ask if you can file a schedule D with an explanation of 1099 being filled in wrong by sedo | ||||
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| | #50 (permalink) |
| New Member Join Date: Feb 2008
Posts: 3
![]() | Thanks Fatter Finally I cleared couple things . I made also one mistake and apologize to Sedo . It is difficult to get someone on phone and I get someone finally . Sedo DID not report anything on box 9 or any box for domain sales . They reported just ppc . I was told that is our responsibility to report sales and how to do it and which forms is up to us . I agree Fatter with you for schedule d but not sure for trademark way because you have to own first trademark , IMHO . ????: NamePros.com http://www.namepros.com/showthread.php?t=377342 BTW they dont report for anyone sales to irs , just ppc . It is gray area also for irs , because if you use schedule d irs can ask you where is 1099-b . Internet is here about 20 years and they dont have yet any rules about domains , and domains cant be property , since they expiring , more like transfer of service . But irs have rules and instructions for ;..if you sell illegal drugs , get bribe , stole anything etc you must pay taxes and report amount you stole , see irs.gov . I guess it will be easy for police in future to catch all robbers , they have to read income tax returns . I can see ' if someone bought you glass of wine or beer report on line 21 . Went to cpa , will pay $300 for service but have no choice , despite I can file myself , but audit from irs is 10 times less for cpa returns . One lady at irs , eye to eye contact asked me ' what is domain name ????" If there are not rules it is easy to get in trap , they can say whatever they want . |
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