NameSilo

Domains and taxes

Labeled as discuss in General Domain Discussion started by Picassoface, Mar 2, 2019.

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  1. Picassoface

    Picassoface Top Member VIP ★★★★★★★★★★

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    Let's say I paid $3,000 for all the domains I purchased in 2018. And say I sold $4,000 worth of domain names. Do I need to set up an LLC, or can I just add the $1,000 to miscellaneous income on my tax form ? It would be easy to produce receipts for the $3,000 in purchases if asked but do you need to do it officially through an LLC ? Thanks !
     
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  2. creataweb

    creataweb Some Guy with Awesome Senior High School Photo VIP ★★★★★★★★★★

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    It's best to ask a tax professional in your area. I don't think NP is the best place for this advice lol, we are all from around the world with different laws etc.
     
  3. DomainsMaven

    DomainsMaven Established Member

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    Put it in your personal tax. There is a form. I forgot the name of it. Talk to your tax guy and show your profit, loss expenses, fees. If you don' t have LLC.
     
    Last edited: Mar 2, 2019
  4. HappyW

    HappyW Owner of NamesMaker.com Gold Account

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    I think DomainsMaven That's right,
    there is no direct relationship between personal income tax and domain name income.
    The domain name income is only a part of your personal income, so the tax officer will not emphasize the source of income.
     
  5. NameBuyer.com

    NameBuyer.com Member PRO VIP ★★★★★★★★★★

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    Turbo Tax will add a Schedule C for you to fill out. In addition to this, I do a partial office expense for the home office costs, cell phone, internet connection, and typically you can expense a percentage of your landscaping, and other bills that apply to the whole household.

    The percentage is typically the square footage that you use of the office (for business) in relation to your total square footage of your home/apartment.
     
    Last edited: Mar 4, 2019

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