Professional Domain Appraisal service accepted by IRS?

[fonzie_007]

Does anyone have experience with a domain appraisal service that has been accepted by the IRS for valuation reasons?

Here's the situation: A non-profit wants to buy one of my domains for significantly less than the domain is worth. I am not opposed to selling the domain so long as I can take a tax deduction for the difference of what will be paid compared to what the domain is worth. The difference in what is being paid compared to what I believe the value of the domain is about $4,000-$8,500.

If I recall, other NP members have dealt with this situation previously; however, I have found several the generally-known "reputable" companies unwilling to do appraisals or disclaim any ability for third-parties to rely on the appraisal.

Thanks for the assistance.

-Fonz

 

[lothos]

I believe Moniker states their appraisal service is accepted by the IRS.

 

[Ms Domainer]

*

I think the best place to check is irs.gov--

I know, I know. That's tantamount to having one's toenails plucked out, one by one.

​

But, still...the IRS may have some complicated rules about intangible property.

IRS rules can be funky and vague, so another option would be to check with a domain lawyer or any lawyer who deals with intangible assets.

Yours is a good question, though, and one that should be asked by anyone who deals in domains or other intangibles.

*

 

[fonzie_007]

I believe Moniker states their appraisal service is accepted by the IRS.

I was on Moniker trying to look for this service, because I too recall they used to provide them; however, I was unable to find any option to purchase an appraisal. The link only goes to their brokerage services.

---------- Post added at 10:01 PM ---------- Previous post was at 09:59 PM ----------

*

I think the best place to check is irs.gov--

I know, I know. That's tantamount to having one's toenails plucked out, one by one.

​

But, still...the IRS may have some complicated rules about intangible property.

IRS rules can be funky and vague, so another option would be to check with a domain lawyer or any lawyer who deals with intangible assets.

Yours is a good question, though, and one that should be asked by anyone who deals in domains or other intangibles.

*

Thanks for the feedback, but I have already read the IRS regs, hence the inquiry.

 

[Fonzie]

IIRC, Rob Grant has a lot of experience with this.

If he's not too busy, he might be able to steer you right.

 

[lothos]

I was on Moniker trying to look for this service, because I too recall they used to provide them; however, I was unable to find any option to purchase an appraisal. The link only goes to their brokerage services.

You're right, the service seems hard to find now. Here's the closest page I found:

https://www.moniker.com/domainappraisalbrokerage.jsp

It also says to contact sales to get started, you might want to try there?

 

[fonzie_007]

IIRC, Rob Grant has a lot of experience with this.

If he's not too busy, he might be able to steer you right.

Thanks. I do not know Mr. Grant, but sent him an email.

I also left a VM for Moniker's sales staff about whether they still do appraisals.

 

[Domagon]

Many non-profits, even seemingly small ones, these days are more akin to for-profits. If they really want the domain bad enough, they'll find a way, such as finding a donor to pony up the funds / buy it on their behalf.

As for value, if the domain name is essentially only desirable to that specific organization with no realistic expectations of other buyers willing to pay much of anything for it, then, for all practical purposes, it's only worth what that non-profit is willing to pay. Negotiate harder

 

[fm1234]

Fonzie

You may want to talk with your accountant before you do this. If the discounted price of the domain still represents even a nominal profit to you, it is possible that the IRS won't let you have a deduction at all.

This article from DNW covers some of the issues of taking deductions on donated names (which is problematic despite being more straightforward than selling at a perceived discount.)


Frank

 

[fonzie_007]

Fonzie

You may want to talk with your accountant before you do this. If the discounted price of the domain still represents even a nominal profit to you, it is possible that the IRS won't let you have a deduction at all.

This article from DNW covers some of the issues of taking deductions on donated names (which is problematic despite being more straightforward than selling at a perceived discount.)


Frank

Excellent article Frank. Thanks for sharing.

 

[Turrican]

Domainappraisal.org

Tax Purposes "Our appraisals are guaranteed to be accepted by the IRS"

 

[RazorNF]

I believe Moniker states their appraisal service is accepted by the IRS.

Yes, they did claim this at one point. I purchased an appraisal from them many years ago with this in mind. Though I soon realized it was worthless. I was given a 5-digit appraisal, yet despite repeated submissions to their auctions, they wouldn't list it.

I really have my doubts - if the IRS really officially accepted domain appraisals, then wouldn't everyone be getting them for their domains?

The bottom line is, do whatever you can back up officially - that is if your accountant is willing to stamp his name on it.