Pay taxes when you sell a domain name?

Discussion in 'Domain Names' started by Suziclue, Jan 15, 2009.

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  1. #1
    Do you need to pay taxes when you sell a domain name?

    For example.. I buy

    XXXX.com for $80 two years ago..
    now someone offers 2500 for the domain.. do I need to pay taxes and what type of tax is it?
     
    Suziclue, Jan 15, 2009 IP
  2. Colbyt

    Colbyt Notable Member

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    #2
    In the US that would be a capital gains tax where under current (non Obama) law you would pay between 10 and 28% of the gain.

    This would be reported on a sch D and attached to your form 1040.
     
    Colbyt, Jan 15, 2009 IP
  3. arramuse

    arramuse Active Member

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    #3
    where are u Buy the Domains ??

    you just set taxes by your self..

    Count from of cost management administration
     
    arramuse, Jan 15, 2009 IP
  4. rena

    rena Peon

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    #4
    Damian can exchange with ppls and no need any document too.. me to purchase couple of domain just pay some money through paypal and get transfers.. I dont know about US may be some taxes on the transaction by creditcard or any other sources( not directg)
     
    rena, Jan 16, 2009 IP
  5. jackio

    jackio Banned

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    #5
    i still think this law is somehow confusing, not very clear in my humble opinion
     
    jackio, Jan 17, 2009 IP
  6. tommytusa

    tommytusa Peon

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    #6
    yes, you are supposed to pay capital gains tax (if over 1 year then it is long terms capital gain, if your buy/sell is under 1 year then short terms capital gains)

    you can try to get away with not paying tax, you wont get caught unless they specifically audit you, not sure if $2k would get you in any real trouble.
     
    tommytusa, Jan 17, 2009 IP