DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars
HomeRegisterMembershipsGetting StartedDomain Tools Domain EbooksSEO Software Domain Resellers Advertise

Go Back   DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars > Domain News, Beginners Guides and Legal Stuff! > Domain Name Legal Issues
Register Search Today's Posts Mark Forums Read

Reply
 
LinkBack Thread Tools Display Modes
Old 10-27-2005, 03:58 PM   #1 (permalink)
Platinum Lifetime Member
No Avatar
 
Last Online: 11-08-2008 10:44 AM
iTrader: (0)
Join Date: Jan 2005
Posts: 11
DNF$: 117


Question Are domains assets?

Hi,

Does anyone know the tax treatment of domains? I'm particularly interested in the UK tax treatment.

Are they technically assets and subject to capital gains tax?

Should the profits just be registered in your personal tax return?

Or do they constitute casual earnings and you should therefore register as self employed???

I'm puzzled to say the least!

By the way, I'm talking about earnings that are too small to constitute forming a company.
rolf is offline   Reply With Quote
Sponsored Ads
Old 10-27-2005, 04:12 PM   #2 (permalink)
DNF Addict
 
GT Web's Avatar
 
Name: Daniel
Last Online: 10-25-2009 04:41 PM
iTrader: (24)
Join Date: Feb 2003
Posts: 6,910
DNF$: 9,193
Location: Vancouver, Canada
Country:

Send a message via MSN to GT Web

Re: Are domains assets?

The way I do it (I am by no means an expert):

Revenue = all domain sales
Costs = reg fees and all my domain purchases

Owning a domain does not constitute an asset (at least one worth more than reg fee) because it is impossible to guess a value of the domain.

I would also like to hear from someone more knowledagable than myself, but I haven't had any problems over the past few years.
__________________
GT Web is offline   Reply With Quote
Old 10-27-2005, 04:17 PM   #3 (permalink)
DNF Regular
No Avatar
 
Last Online: 11-19-2009 11:08 PM
iTrader: (54)
Join Date: Nov 2004
Posts: 734
DNF$: 456
Location: Maldives
Country:


Re: Are domains assets?

you don't report any earnings via domain name monetization (ppc, adsense, ypn or affiliate earnings) ???
__________________
Ca$hCowDomain$ - We buy generic dot com revenue domains.
CashCowDomains is offline   Reply With Quote
Old 10-27-2005, 05:52 PM   #4 (permalink)
Platinum Lifetime Member
 
Rubber Duck's Avatar
 
Last Online: 11-20-2009 07:36 AM
iTrader: (16)
Join Date: Jun 2004
Posts: 2,841
DNF$: 2,935


Re: Are domains assets?

Quote:
Originally Posted by rolf
Hi,

Does anyone know the tax treatment of domains? I'm particularly interested in the UK tax treatment.

Are they technically assets and subject to capital gains tax?

Should the profits just be registered in your personal tax return?

Or do they constitute casual earnings and you should therefore register as self employed???

I'm puzzled to say the least!

By the way, I'm talking about earnings that are too small to constitute forming a company.

Good question and I am from the UK as well!

I already had a company running and put my domains through that company as a side line.

When I launched into IDN in a big way I set up a separate company (Chinese Domains Ltd) with my partner.

No domains are not generally allocated more value than their registration fee, which is written off every year. Traffic and sales are treated as income and that which is identifiably as from the EU is declared for VAT.

With corporation tax, as you are allowed £10,000 a year exempt as long as it is not taken as dividend during that year, it may be beneficial to revalue your portfolio to effectively carry a tax credit into future years. We are investigating this avenue at present.

I believe that the Revenue in the UK, whilst unable to grasp the concept at present will track down those who do not properly declare their earnings. I personally believe limited company is the way to go.

Best Regards
Dave Wrixon
__________________
Yours, Rubber Duck

Please note that any historic offers over a month old are null and void.
Rubber Duck is offline   Reply With Quote
Old 11-01-2005, 08:22 AM   #5 (permalink)
Domain investor
 
oberheimer's Avatar
 
Last Online: 11-20-2009 05:23 AM
iTrader: (9)
Join Date: Dec 2002
Posts: 607
DNF$: 582
Location: Sweden
Country:


Re: Are domains assets?

and if i sell a domain name, how do you do to avoid the tax. Let's say you sell it for xx xxx then you are supposed to pay tax on that.
__________________

---------------------------------------
Though shalt not spam - BUYING LLL.com & Quality word.com
oberheimer is offline   Reply With Quote
Old 11-01-2005, 10:54 AM   #6 (permalink)
Platinum Lifetime Member
 
Rubber Duck's Avatar
 
Last Online: 11-20-2009 07:36 AM
iTrader: (16)
Join Date: Jun 2004
Posts: 2,841
DNF$: 2,935


Re: Are domains assets?

Quote:
Originally Posted by oberheimer
and if i sell a domain name, how do you do to avoid the tax. Let's say you sell it for xx xxx then you are supposed to pay tax on that.
Well, perhaps Sweden is different but I don't see anything in British Law to say that Domain sells are exempt from tax. In the UK it makes more sense to be taxed as a company than as an Individual.

Best Regards
Dave Wrixon
__________________
Yours, Rubber Duck

Please note that any historic offers over a month old are null and void.
Rubber Duck is offline   Reply With Quote
Old 11-01-2005, 10:08 PM   #7 (permalink)
DNF Addict
 
Domagon's Avatar
 
Name: Ron Bennett
Last Online: 07-14-2009 02:31 PM
iTrader: (26)
Join Date: Oct 2003
Posts: 1,372
DNF$: 7,978
Location: Wyomissing, PA
Country:


Re: Are domains assets?

The treatment of domains for tax purposes really depends on the situation ...

For folks who primarily register and/or buy low-priced domains and then resell in a manner similar to other forms of merchandise, they should likely treat them as "inventory".

For folks who buy domains and resell for considerably more than their initial registration / purchase cost, they should likely treat them as investment assets; capital gains, etc.

There are other accounting variations that some folks use - key is to be consistant and have a logical, justifyable basis for the method chosen.

Regardless of how one treats domain names, taxation should be expected if doing more than a few thousand dollars worth of sales per year unless of course off-set by purchases, expenses, etc.

Ron
__________________
Domagon Consulting Services - Business Help and Problem Solving
SeedCash.com - sow those economic green shoots. Make An Offer!
Domagon is offline   Reply With Quote
Old 11-03-2005, 02:33 AM   #8 (permalink)
Bloody lovely
 
Acro's Avatar
 
Last Online: Yesterday 02:57 AM
iTrader: (394)
Join Date: Feb 2004
Posts: 23,904
DNF$: 4,079
Location: USA
Country:




Re: Are domains assets?

In the US:

Selling price - Purchasing price = Taxable amount as capital gains (if 1 year old).
__________________

DomainGang.com - Domainers' Most Awesome News Source
Acroplex - Web & Graphics
Acro.net - My Blog
My Countdown Counting down to: Snapnames rebate hitting my mailbox
77 days 23 hours 53 minutes
Acro is offline   Reply With Quote
Old 11-04-2005, 02:13 AM   #9 (permalink)
DNF Regular
 
snicksnack's Avatar
 
Last Online: 11-22-2009 02:57 AM
iTrader: (27)
Join Date: Oct 2004
Posts: 1,145
DNF$: 5,974
Location: China
Country:

Send a message via Skype™ to snicksnack

Re: Are domains assets?

Normally a domain is not considered an asset. The domain can however also become smiliar to a brand/represent a certain value and then the good will could be capitalized in the blance sheet.
__________________


.CM domains Euro 70 per year
snicksnack is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 12:05 AM.
Copyright @2001-2009 DNForum.com