Taxes?

[Rudy]

Hey everyone,
I'm wondering how taxes are involved in the selling of domain names? I mean, if someone were to sell a domain for $15,000, would the seller have to pay some sort of taxes on it?

How would that be done, etc...?

 

[Brian]

If you are an indivdual selling it you would have to pay income tax on it. If you sell it as a business, you would have to pay taxes as well, but I don't know all the business in's and out's.

 

[yandig]

Yes, you would pay tax on the GAIN on your personal tax return if you're an individual.

 

[TUFKATH]

Is this just in the U.S.? I live in Canada. I've sold a bunch of domains but I've never had to pay tax before.

 

[Rudy]

Yes, you would pay tax on the GAIN on your personal tax return if you're an individual.

Or if I'm running a sole-proprietorship.

Thanks,
David

 

[cache]

for USA, if the seller does not generate a 1099, how does the government know the sale transaction?