question Domain Tax Question?

[ThatNameGuy]

Now for my question...for certain domains that I've purchased for xxx.xx amount of dollars, and a legitimate appraisal shows that domain has doubled in value, am I able to take the double value as my tax deduction? What I do know is, if I purchase a stock for xxx.xx dollars, and it doubles in value, I'm able to deduct the value of the stock at the time I gift/donate as seen here: https://www.rbcwm-usa.com/resources/file-687728.pdf

I'm sure there would be certain requirements like, the entity you're gifting to would have to provide you with a receipt, and maybe either use the domain for it's own benefit or at a minimum put it up for sale for as much as or more than it's appraised value. Certainly all the i's need to be dotted and the t's need to be crossed.

Bulloney

 

[bmugford]

Assets like stocks have a liquid market value which is easy to establish. It is far different in the domain field when valuation is highly subjective. I am not aware of what, if any, appraised value the IRS would be willing to accept when it comes to domains.

I have donated multiple domains to various parties in the past. Trying to pass off some bloated domain appraisal to the IRS is likely a recipe to get audited. I would suggest you contact a tax attorney.

Brad

 

[garptrader]

The applicable code is section 170...

https://www.law.cornell.edu/uscode/text/26/170