Tax forms & Parking Payment

[CHILLY]

What is the Tax forms that you fill out when you receive your first payment from parking your domains--Do all the Parking services require this? I.E., do you pay taxes on money made from parking you domain names??

 

[fatter]

Assuming you are talking about USA I file a schedule c business income under my name as a sole propieter, otheres do it differntly, some parking companies send 1099's
that list years income others dont and I just add those to total income, I deduct reg fees and expenses ie: computer usage paper etc.

Sale of domains is a little trickier because it is still a gray area with IRS and not many court cases available, some list as capitol gains some a intellectual property such as a trademark sale, this last category is ok if this was your main business and the name was part of it according to irs, but for most sale of domains is treated like sale of inventory such as a store front.Best thing is get an accountant who knows domain names

 

[ForexPros]

you have to record your "parking income" on your 1040 as other income

buy the way here is a nice article about tax issues related to the purchase of the domains at tax forum

 

[fatter]

you have to record your "parking income" on your 1040 as other income

buy the way here is a nice article about tax issues related to the purchase of the domains at tax forum

forexpros if we record as other income and we get a 1099 are we allowed to deduct expenses from the category other income, wouldnt it send a red flag if 1099 says 18k but we only reported like 5k in additional income?