Cost Base of an LLL.com?

[DomainLobe]

A question for some of the oldtimers.

What would the 'cost base' of an LLL.com originally purchased in ?1995 and held by a single owner since then? In other words what is the total of all registration costs paid over the past 12 years?

"The cost base of a capital gains tax (CGT) asset is generally the cost of the asset when you bought it. However, it also includes certain other costs associated with acquiring, holding and disposing of the asset."

Thanks for your help.

 

[zestydomains*com]

I guess the simple answer is that if the same owner owned the domain over the whole last 12 years in your example, the cost basis would be 12 times reg fee.

This said, a complicating matter is that it was only in 1995 that reg fees came about. Prior to 1995, registrations were free. I guess it would depend when the domain was regged in 1995 as to how many reg fees were paid.

Also, the reg fees for the first years would have probably been around $35 a year for at least the first few years. Around 1999-2000, the reg fees went from $35 a year to as low as ~ $7 a year. If you regged the name and paid the full retail price at Network Solutions the whole time, the cost through 2007 would be roughly 12 x $35, or about $420. More than likely, the cost basis based on reg fees would be lower than this amount, however, if the domain owner renewed the domain with lesser cost registrars.

I hope this helps...it's a little bit of a wordy answer to what seems a relatively simple question.

Thank you,
zesty

 

[Keynes]

Capital gains tax rates are also contingent on how long you held the asset. Additionally, there are multiple ways to categorize domains for taxation purposes. If you're looking at a large deal, consulting with an accountant might save you some liability.

 

[DomainLobe]

Thank you Keynes and Zesty.
Just the answers I was looking for.
The total registration costs should be less than $400 with a reasonable renewal fee.
A great return given the current minimum value of LLL.com ( www.3character.com ).
I am also looking at the projected cost base of 'new' domain sectors eg. LLL.IN in order to determine optimal holding periods based on appreciation (which is a little too early to determine).
Thanks again.
Reps added

 

[cache]

what if that same domain earned you parking revenue or adsense money?