Domain Sales and Uncle Sam

[adinfinite]

Just wondering. Are profits on domain sales treated as Capital gains taxes or are they treated the way the IRS treats the sale of a business?? Just wondering. I notice there is a dearth of info as far as this is concerned. I always see the big domain sales in the press but not much about the taxes etc.

 

[mosilager]

Your best bet would be to talk to an accountant about it. If you've got a registered business that deals in domains, then you would obviously pay taxes through that company, if you're not a registered business, and make money, I suppose you'd have to declare your gains as earned income...but I wouldn't know as I don't make much money from domains (yet)...:]

 

[FPForum]

I was also curious about this. Another question that I think can come into play is does the buyer declare it? I mean if some small company bought a domain off me for $250 and the owner or whomever paid for it from their personal account and aren't even going to declare it, is it necessary for you to claim it?