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I have a buyer for a domain, but I want to sell my domain for crypto?

Labeled as advice in Domain Buying and Selling Discussion, started by colenot, Jun 25, 2021

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  1. colenot

    colenot Upgraded Member Gold Account ★★★★★★★★★★

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    Hey everyone,

    I have someone (a company) that wants to buy a domain from me. Instead of cash, I want to sell it for crypto (like bitcoin and etheruem).

    Anyone have any experience in this? Is there an escrow service that I can use for this?

    Thanks
     
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  2. hui2000

    hui2000 Stable Brands VIP

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    Sure, Use Dan.com or epik.com
     
  3. colenot

    colenot Upgraded Member Gold Account ★★★★★★★★★★

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    Thank you for your reply? Do you have experience in this and what can I expect? Any tips?

    Thanks!
     
  4. Robin A.

    Robin A. Established Member

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    Take the cash and then convert it yourself to crypto. Just to make sure you don't lose the sale
     
    Last edited: Jun 25, 2021
  5. Debasis

    Debasis Established Member

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    Do the simple thing. Take cash Buy crypto. Or don't put all money to crypto.
     
  6. colenot

    colenot Upgraded Member Gold Account ★★★★★★★★★★

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    I was trying to avoid paying taxes immediately as i would probably get 1099'd on it.

    Any suggestions on how to delay taxes on approx 40k sale? Should i create an LLC in Wyoming or Delaware?

    Any suggestions on this?

    Thanks!
     
  7. Robin A.

    Robin A. Established Member

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    You're aware that Bitcoin transactions are not anonymous? Don't break the law - just re-invest all your profits and you won't pay any taxes that way.
     
  8. jhm

    jhm Glazed

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    @Robin A. +1 ...As the above mentioned, DAN / Epik can facilitate you

    A further point I want to make, unless you're going long in crypto ...BTC / ETH isn't that ideal. You can lose noticeable percentages on the sale, due to the volatility. If you're going long, it doesn't matter. If your plan is to convert to fiat, bare that in mind
     
    Last edited: Jun 25, 2021
  9. colenot

    colenot Upgraded Member Gold Account ★★★★★★★★★★

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    I know, but you don't pay taxes until I would sell Bitcoin later. So, it I got 40k of Bitcoin for a domain, I wouldn't have to pay taxes until I actually sold it.

    If I got money transferred into an LLC, I would pay lower taxes, giving me more money for me to invest into crypto.

    I'm not trying to avoid paying taxes. I'm trying to avoid paying maximum taxes up front. I want to have the maximum amount to invest and pay taxes when I finally sell. I hope that makes sense.

    I already have a little Bitcoin and other crypto for the long haul.
     
    Last edited: Jun 25, 2021
  10. Robin A.

    Robin A. Established Member

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    Agreed! Bitcoin and all other coins saw a 40% drop recently within one week. Ouch! And people still see crypto as an investment and better than gold.
     
  11. colenot

    colenot Upgraded Member Gold Account ★★★★★★★★★★

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    I know it seems risky, and yes it dropped 40% recently (a healthy correction just like every stock has too). I got a little of this and that 3 years ago because of its extreme scarcity as well as I believe in its utility. Anyways, I'm way up so I'm looking to add to my position.

    Do you guys create and use LLC's to buy and sell your domains or just get a 1099 at the end of the year from the escrow company (Dan.com, epik, sedo, escrow.com)?
     
  12. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    The proceeds from a sale are taxable, regardless of how you get paid.

    If you get $40K in USD and then buy $40K in crypto that is taxable.
    If you get paid $40K in crypto, that is taxable.

    Brad
     
  13. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    That is not true. That is only true when you realize gains on that investment.
    The initial cost is a sale. You have just chosen to taken payment in crypto.

    That initial payment is taxable.
     
  14. kite26

    kite26 Fearless Bird VIP

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    This buyer approached you via Flippa? I am asking it for a reason.
     
    Last edited: Jun 25, 2021
  15. colenot

    colenot Upgraded Member Gold Account ★★★★★★★★★★

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    I read this

    "Under U.S. tax law, bitcoin and other cryptocurrencies are classified as property and subject to capital gains taxes. But you only owe taxes when those gains are realized.

    Just because your Coinbase portfolio drastically grew in value last year doesn’t mean that you’ll be writing out a check to Uncle Sam come April. Similar to trading stocks, you only need to list gains you earn from bitcoin as income when you decide to sell.

    “If you never sell your bitcoin, you never owe cash,” Ben Weiss, COO of CoinFlip, the largest Bitcoin ATM provider in the country, tells CNBC Make It. “Bitcoin is treated like if you bought and sold a stock.”

    No. Directly
     
  16. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    If you take payment for something, the value is taxable. It doesn't matter if it is in cash, gold, bitcoin, whatever.

    The $40K is taxable. If you choose to take it in Bitcoin that value is taxable.
    The gains (or losses) from that Bitcoin would not be taxable until realized.

    Since Bitcoin is property, any time you use Bitcoin it is a taxable event where the gains (or losses) need to be calculated and reported, if over a certain threshold.

    Brad
     
    Last edited: Jun 25, 2021
  17. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    The IRS answers a lot of questions here -

    https://www.irs.gov/individuals/int...ed-questions-on-virtual-currency-transactions

    How do I calculate my income if I provide a service and receive payment in virtual currency?
    The amount of income you must recognize is the fair market value of the virtual currency, in U.S. dollars, when received. In an on-chain transaction you receive the virtual currency on the date and at the time the transaction is recorded on the distributed ledger.

    The IRS added a crypto question to the tax forms. You are better off taking payment in USD, then buying the crypto if you want. That does not require you to check the box.

    The United States IRS has clarified that crypto investors who only purchased digital assets using fiat and did not sell during 2020 do not need to report said activities. ... Conversely, if they purchased crypto with other crypto assets, or sold any of their cryptocurrency during 2020, the transactions must be reported.
     
    Last edited: Jun 25, 2021
  18. dogedomainswap

    dogedomainswap New Member

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    Doge can be used for dogedomainswap
     

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