Sales real or not?

[jasdon11]

After looking at this weeks sales on DNJ, particularly the top sale - I wonder what percentage of medium to large domain sales are just cash grabs by company owners / directors wanting to get funds out of their businesses?

I'm not insinuating that this is the case with this name, but that you can basically sell any name, for any amount of money, and who's to say it's not kosher?

Another thing - it surely can't be long before muni-lorndering* inspectors come down heavily on the domain industry, and what implications will that have for us?



* don't want the post indexed for the term.

[caper5]

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[acronym007]

Originally Posted by jasdon11

After looking at this weeks sales on DNJ, particularly the top sale - I wonder what percentage of medium to large domain sales are just cash grabs by company owners / directors wanting to get funds out of their businesses?

I'm not insinuating that this is the case with this name, but that you can basically sell any name, for any amount of money, and who's to say it's not kosher?

Another thing - it surely can't be long before muni-lorndering* inspectors come down heavily on the domain industry, and what implications will that have for us?



* don't want the post indexed for the term.

I have thought the same things a million times. It is very possible.

Possible impact on us is that one day the domain industry could more look like the real estate indsutry with a more formal legal/paper process.

[jasdon11]

Originally Posted by caper5

That makes no sense at all. Selling a domain to your own company? You still have to pay the personal taxes and doing this you pay the personal taxes and you have less money in your company account, so whether you just buy a domain from yourself or pay yourself more money you are still in the tax bracket you are in. I know you like a good conspiracy theory, but that makes no sense at all.

If you can't see how / why it's done, better stick with the day job...

[caper5]

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[jasdon11]

Originally Posted by caper5

I know accounting very well and from an accounting stand point it make no sense.

Where are the aliens this week?

Sometimes it's better to keep your mouth shut and let people think you're a fool, than to open it and prove them right.

You know accounting very well? I guess that's why accountants spend all their time counting other peoples money...

[Acro]

The cost of acquisition of the domain can easily be tagged as an expense, if the company's function is not to otherwise buy/sell domains. So I would think that it's possible.

[caper5]

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[jasdon11]

Originally Posted by caper5

No legit business would ever actually do that. Just puts red flags everywhere on your business. Try to write off something you buy from yourself? Audit???

Look, I'll spell it out to you.

Joe Shmo owns a cash rich company and wants to get some cash out without paying tax on it. He sets up a 'no questions asked' company in a friendly jurisdiction that buys a domain name that is pertinent to his business.

This company places the name for sale with say, Sedo. His company buys the name through Sedo at a greatly inflated price. He gets a receipt from Sedo for the amount paid. Sedo pay the offshore company. He now has a bundle of cash in an offshore bank, and his company has a domain that gets 10 hits a week!

Get it?

[caper5]

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[jasdon11]

Originally Posted by caper5

And nice with the name calling jason11. Not me opening my mouth saying everything is a government conspiracy. Take your own advice.

Look sunshine, if you don't agree with anything I've said in other threads, address them there - not here. Prat.

[Acro]

[Carter]

Originally Posted by jasdon11

Look, I'll spell it out to you.

Joe Shmo owns a cash rich company and wants to get some cash out without paying tax on it. He sets up a 'no questions asked' company in a friendly jurisdiction that buys a domain name that is pertinent to his business.

This company places the name for sale with say, Sedo. His company buys the name through Sedo at a greatly inflated price. He gets a receipt from Sedo for the amount paid. Sedo pay the offshore company. He now has a bundle of cash in an offshore bank, and his company has a domain that gets 10 hits a week!

Get it?

Dirty Game.

[jasdon11]

Originally Posted by caper5

Offshore account. Like I said no legit business and an audit.

I never mentioned legitimate.

You trying to get your post count up before school starts again?

[acronym007]

Originally Posted by caper5

No legit business would ever actually do that. Just puts red flags everywhere on your business. Try to write off something you overpay from yourself? Audit???

And nice with the name calling jason11. Not me opening my mouth saying everything is a government conspiracy. Take your own advice.

Ever heard of Enron?

http://en.wikipedia.org/wiki/Enron

"legit" until caught.

[dn-101]

Unfortunately, fake sales take place in the art world everyday.
The art dealers inflate prices ten-fold

[caper5]

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[acronym007]

Originally Posted by caper5

Yes and because of them and Worldcom, etc... this rarely happens!

His point was that this is common. The idea that companies are buying all the top selling names from themselves is ridiculous. Just another conspiracy theory. Most sales are completely legit. I am sure there are a couple here and there, but this post was implying most top sales are not.

Unfortunately I think corruption with money is more common than we would all like to know. I don't know if it happens often in our industry or at all. I don't think he was saying all top names or all sales. I guess we will never know, none of us will know until people are caught, like Enron. No one, no simpleton, knew until the stockholders were left holding the bag.

[caper5]

Originally Posted by acronym007

Unfortunately I think corruption with money is more common than we would all like to know. I don't know if it happens often in our industry or at all. I don't think he was saying all top names or all sales. I guess we will never know, none of us will know until people are caught, like Enron. No one, no simpleton, knew until the stockholders were left holding the bag.

Fair enough

[jasdon11]

Originally Posted by caper5

Yes and because of them and Worldcom, etc... this rarely happens!

His point was that this is common. The idea that companies are buying all the top selling names from themselves is ridiculous. Just another conspiracy theory. Most sales are completely legit. I am sure there are a couple here and there, but this post was implying most top sales are not.

Could you highlight in the opening (or any following) post, where you think I was implying that most top sales are not kosher?

I'm certain that most are genuine. But I'm also pretty sure that some aren't.