Entries from DomainRich tagged with 'tax issues'

How to Classify Domain Name Sales Income for Tax Purposes: Developing a Defensible Tax Strategy

With tax season looming, we've had a lot of questions from domain name investors about how to classify income they've generated from the sale of domain names. If you purchase a domain name for $10 and sell it a few years later for $20,000, how do you treat that income on your tax return? Is it capital gains income, or ordinary income? Do you have to depreciate domain names? What's the difference between tangible and intangible assets and how does that affect your tax planning?