Need trusted appraiser for tax purposes - DNForum - Domain Sales, Domain Forum, Domain Appraisals, Domain Registrars

**pmdpmd** · 03-19-2008, 01:09 PM

Can anyone recommend an appraisal company? I need to get my portfolio valued for tax purposes.

I don't suppose the taxman knows toomuch about appraising domains, so I will need to justify my choice of appraiser by saying they are the largest appraiser or something like that.

Thanks,
Paul.

**Johnn** · 03-19-2008, 01:12 PM

For tax purposes, would it be your costs?

**Acro** · 03-19-2008, 01:17 PM

Not sure if you can deduct your domain inventory valued based on appraisals. Normally, once you sell a domain its acquisition cost is deducted from the proceeds of the sale and then you are taxed on that.

**pmdpmd** · 03-19-2008, 01:34 PM

I am transferring my portfolio into a company - i.e. a separate legal entity. This will trigger the capital gains tax on the uplift in value of the domains since I bought them.

**Johnn** · 03-19-2008, 01:39 PM

You don't pay for the capital gain until the name is sold. Samething like the stocks.

**Acro** · 03-19-2008, 01:48 PM

Quote:

Originally Posted by pmdpmd

I am transferring my portfolio into a company - i.e. a separate legal entity. This will trigger the capital gains tax on the uplift in value of the domains since I bought them.

It's best to consult with a certified public accountant familiar with domains.

**pmdpmd** · 03-19-2008, 01:50 PM

The domain names are effectively being sold - from me as a private individual to a new company. Because I own 100% of the shares in the new company, the transaction is classed as a "related party" transaction which means the taxman will not trust the amount the company pays for the domains as being a fair valuation. Hence my requirement for an independent valuation which the taxman will accept.

Acroplex: Thanks for the suggestion. I have done so and got the advice - just need the appraisal now.

Here are some appraisers - has anyone got any comments on them?

Godaddy
Moniker
Sedo
Afternic
Domainappraisal.org

Cheers,
Paul.

**Acro** · 03-19-2008, 01:57 PM

But if the portfolio is being sold, it bears a price. Why would a valuation be relevant?
Sell (transfer) the portfolio for the sum of $1 and write yourself a performance bonus

**stock_post** · 03-19-2008, 11:55 PM

You are the best appraiser in the given case!
And no one will have a fit about that (including IRS)

They know they can get the money when you sell the domains.

**replic8te** · 03-20-2008, 05:52 AM

Acro is right, at least that works here in Canada. "Selling" domains to your corp is a legal trade between 2 distinct legal entities. You could sell the for however much you like - if you want to get $$ out of your corp into your hands, sell high. If you want to leave the corp funding out of it, sell for a dollar. Its just a buyer and seller agreeing on what is "fair value".

My corp just got a great deal on 2 new pc's - cost a buck