Experience with domains and IRS

[tonecas]

have anyone found creative ways of dealing with the IRS and taxation of domain sales?
like considering domains has an investment and not as a business; domains as collectibles; by considering the trading of domains not related to your fiscal residence (management, buyers, escrow all out of your home country); etc.

this question should be pervasive to most countries given that we are all coming to a common economic and taxation model all over the world, so any input from domainers out of the US would be welcomed.

 

[S-B]

have anyone found creative ways of dealing with the IRS and taxation of domain sales?

Like any smart gangster I pay my taxes.

 

[tonecas]

good point :D
but you know, it is a right to pay the least amount of taxes by all legal means...

 

[Acroplex]

Assuming you are in the US: Form a company eg LLC, holding domains as investments. Treat all domain sales as long term assets. Assets sold after a year of holding are taxed as capital gains; less than that as regular income. Another reason why flipping isn't that great.

 

[S-B]

Assuming you are in the US: Form a company eg LLC, holding domains as investments. Treat all domain sales as long term assets. Assets sold after a year of holding are taxed as capital gains; less than that as regular income. Another reason why flipping isn't that great.

Here's my strategy: Take a loss. :D!

 

[Compassion]

 

[Compassion]

 

[equity78]

Let me say this and take this to heart, not that Acro did not provide good info, do not take tax advice from a domain forum. I know of two guys who did and the one his rear end is still stinging. Consult a tax attorney, and make sure you do things the right way. You do not want to screw with tax authorities from any country. Messi is a God in his country and they are going after him for what they say are owed taxes.

Get appraisals and coupon codes in domain forums, do not get tax advice, because guess what if you screw up no one from a domain forum is going to be there to back you up on the bad advice they gave you.

 

[tonecas]

thanks Acro, that's the kind of insight I am expecting from fellow domainers. This is a group of dynamic people and I am sure many can find ingenious ways to deal with IRS.

i hear you equity78. I will not make any move based solely on forum advices. but at least in my country this "domain stuff" is totally new. most CPAs don't know how to deal with this and most tax/fiscal lawyers just want to take your money for a mediocre service. the common trend it's to place it under ecommerce and tax the sales under a business activity like any other tangible asset. then there is also the question with business profits and personal profits/income leading to more taxation...