Dynadot

advice I have a buyer for a domain, but I want to sell my domain for crypto?

Spaceship Spaceship
Watch
Impact
69
Hey everyone,

I have someone (a company) that wants to buy a domain from me. Instead of cash, I want to sell it for crypto (like bitcoin and etheruem).

Anyone have any experience in this? Is there an escrow service that I can use for this?

Thanks
 
0
•••
The views expressed on this page by users and staff are their own, not those of NamePros.
Sure, Use Dan.com or epik.com
 
3
•••
Thank you for your reply? Do you have experience in this and what can I expect? Any tips?

Thanks!
 
0
•••
Take the cash and then convert it yourself to crypto. Just to make sure you don't lose the sale
 
Last edited:
3
•••
Do the simple thing. Take cash Buy crypto. Or don't put all money to crypto.
 
2
•••
I was trying to avoid paying taxes immediately as i would probably get 1099'd on it.

Any suggestions on how to delay taxes on approx 40k sale? Should i create an LLC in Wyoming or Delaware?

Any suggestions on this?

Thanks!
 
0
•••
You're aware that Bitcoin transactions are not anonymous? Don't break the law - just re-invest all your profits and you won't pay any taxes that way.
 
4
•••
@Robin A. +1 ...As the above mentioned, DAN / Epik can facilitate you

A further point I want to make, unless you're going long in crypto ...BTC / ETH isn't that ideal. You can lose noticeable percentages on the sale, due to the volatility. If you're going long, it doesn't matter. If your plan is to convert to fiat, bare that in mind
 
Last edited:
2
•••
I know, but you don't pay taxes until I would sell Bitcoin later. So, it I got 40k of Bitcoin for a domain, I wouldn't have to pay taxes until I actually sold it.

If I got money transferred into an LLC, I would pay lower taxes, giving me more money for me to invest into crypto.

I'm not trying to avoid paying taxes. I'm trying to avoid paying maximum taxes up front. I want to have the maximum amount to invest and pay taxes when I finally sell. I hope that makes sense.

I already have a little Bitcoin and other crypto for the long haul.
 
Last edited:
0
•••
@Robin A. +1 ...As the above mentioned, DAN / Epik can facilitate you

A further point I want to make, unless you're going long in crypto ...BTC / ETH isn't that ideal. You can lose noticeable percentages on the sale, due to the volatility. If you're going long, it doesn't matter. If your plan is to convert to fiat, bare that in mind
Agreed! Bitcoin and all other coins saw a 40% drop recently within one week. Ouch! And people still see crypto as an investment and better than gold.
 
4
•••
I know it seems risky, and yes it dropped 40% recently (a healthy correction just like every stock has too). I got a little of this and that 3 years ago because of its extreme scarcity as well as I believe in its utility. Anyways, I'm way up so I'm looking to add to my position.

Do you guys create and use LLC's to buy and sell your domains or just get a 1099 at the end of the year from the escrow company (Dan.com, epik, sedo, escrow.com)?
 
0
•••
I was trying to avoid paying taxes immediately as i would probably get 1099'd on it.

Any suggestions on how to delay taxes on approx 40k sale? Should i create an LLC in Wyoming or Delaware?

Any suggestions on this?

Thanks!

The proceeds from a sale are taxable, regardless of how you get paid.

If you get $40K in USD and then buy $40K in crypto that is taxable.
If you get paid $40K in crypto, that is taxable.

Brad
 
1
•••
I know, but you don't pay taxes until I would sell Bitcoin later. So, it I got 40k of Bitcoin for a domain, I wouldn't have to pay taxes until I actually sold it.

That is not true. That is only true when you realize gains on that investment.
The initial cost is a sale. You have just chosen to taken payment in crypto.

That initial payment is taxable.
 
1
•••
This buyer approached you via Flippa? I am asking it for a reason.
 
Last edited:
0
•••
That is not true. That is only true when you realize gains on that investment.
The initial cost is a sale. You have just chosen to taken payment in crypto.

That initial payment is taxable.

I read this

"Under U.S. tax law, bitcoin and other cryptocurrencies are classified as property and subject to capital gains taxes. But you only owe taxes when those gains are realized.

Just because your Coinbase portfolio drastically grew in value last year doesn’t mean that you’ll be writing out a check to Uncle Sam come April. Similar to trading stocks, you only need to list gains you earn from bitcoin as income when you decide to sell.

“If you never sell your bitcoin, you never owe cash,” Ben Weiss, COO of CoinFlip, the largest Bitcoin ATM provider in the country, tells CNBC Make It. “Bitcoin is treated like if you bought and sold a stock.”

This buyer approached you via Flippa? I am asking it for a reason.

No. Directly
 
0
•••
I read this

"Under U.S. tax law, bitcoin and other cryptocurrencies are classified as property and subject to capital gains taxes. But you only owe taxes when those gains are realized.

Just because your Coinbase portfolio drastically grew in value last year doesn’t mean that you’ll be writing out a check to Uncle Sam come April. Similar to trading stocks, you only need to list gains you earn from bitcoin as income when you decide to sell.

“If you never sell your bitcoin, you never owe cash,” Ben Weiss, COO of CoinFlip, the largest Bitcoin ATM provider in the country, tells CNBC Make It. “Bitcoin is treated like if you bought and sold a stock.”

If you take payment for something, the value is taxable. It doesn't matter if it is in cash, gold, bitcoin, whatever.

The $40K is taxable. If you choose to take it in Bitcoin that value is taxable.
The gains (or losses) from that Bitcoin would not be taxable until realized.

Since Bitcoin is property, any time you use Bitcoin it is a taxable event where the gains (or losses) need to be calculated and reported, if over a certain threshold.

Brad
 
Last edited:
3
•••
The IRS answers a lot of questions here -

https://www.irs.gov/individuals/int...ed-questions-on-virtual-currency-transactions

How do I calculate my income if I provide a service and receive payment in virtual currency?
The amount of income you must recognize is the fair market value of the virtual currency, in U.S. dollars, when received. In an on-chain transaction you receive the virtual currency on the date and at the time the transaction is recorded on the distributed ledger.

The IRS added a crypto question to the tax forms. You are better off taking payment in USD, then buying the crypto if you want. That does not require you to check the box.

The United States IRS has clarified that crypto investors who only purchased digital assets using fiat and did not sell during 2020 do not need to report said activities. ... Conversely, if they purchased crypto with other crypto assets, or sold any of their cryptocurrency during 2020, the transactions must be reported.
 
Last edited:
2
•••
Doge can be used for dogedomainswap
 
0
•••
Back