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Domain Tax Strategies

Labeled as advice in General Domain Discussion, started by cocaseco, Nov 30, 2015

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  1. cocaseco

    cocaseco Top Contributor VIP

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    As we start the last month of the year, I am starting to take a close look at my domain business in regards to taxes. As I do that I am wondering what other do in this regard? Do you have any unusual tax savings ideas or creative accounting strategies to share? I operate as a Sole Proprietor, which has generally worked well for me, though i am considering a change next year. But this year, as with the last 5 or 6, I will again have a tax liability. I don't mind paying my fair share, but i do like to make sure it isn't more than my fair share. Like any true American, I want to find ways to reduce that burden in any legal way I can.
     
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  2. mhdoc

    mhdoc Top Contributor VIP ★★★★★★★★★★

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    I batch my domain renewal charges to shift expenses from one year to/from another.
     
  3. aceeca

    aceeca Top Contributor VIP ★★★★★★★★★★

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    What are you planning to change to?
     
  4. Recons.Com

    Recons.Com Top Contributor VIP

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    Thanks for great topic.

    Big question is are domains an inventory of goods where you deduct the cost of acquisition only when the specific domain is sold or should it be treated more like a property investment with some kind of depreciation taken out annually?
     
  5. cocaseco

    cocaseco Top Contributor VIP

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    Probably LLC But possible S Corp. The problem is I don't see a lot of liability in this business, so that's probably the driving force in why I haven't changed yet, and may not. Most other businesses, it is an easy decision as there is a lot more liability.
     
  6. cocaseco

    cocaseco Top Contributor VIP

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    That's a great question. I guess I don't see the inventory as a CAPX so there isn't really any depreciation to be concerned with. I see my portfolio as simply widgets in my warehouse, purchased at wholesale and ready to sell at retail. But I'm not sure that is really the right view.
     

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