For Sale .CA accounting principals

[ianccc]

how do you folks handle (accounting wise) your domain portfolio
within your business.

-is the method used INVENTORY or CAPITAL EXPENSE?

there are plus/minus to each method - I just want to make the right choice

~ian

interested in hearing from part-time domainers - is buying/selling/parking a small part of your bussiness - considering it is not the core unit I think treating them as a Capital Expence will work - I recieved PM from full time domaining companies that cannot

 

[Deleted member 12252]

Parking Revenue + Domain Sales - Registrations/Fees/Expenses - Buying = Net Income

 

[ianccc]

Parking Revenue + Domain Sales - Registrations/Fees/Expenses - Buying = Net Income

not the answer I was looking for

if you purchase domains - with intent to sell/develop I realize any parking rev is clamed as a sale - but all those domains sit there un-sold like "Cash on Hand" or inventory so you get hammerd on taxes - I owe over $15,000 for that simple reason - so my questions is because domaining is not my CORE businesss can I try the Capital Expense - then I am taxable on
have of the sale proceeds - when they sell

what are you folks doing

 

[Deleted member 12252]

From my knowledge, you can do it either way Ian. Your domain purchases can act like investments and you will only claim it once you have sold it.

 

[liberator]

Thats the way I've always done it Jrod

 

[revolution1]

Sorry to drudge this old thread up but, can the sale of domains be considered capital gains???

Thanks,
Christian.

 

[hugegrowth]

I am looking for an accountant for this year, is it easy for a professional accountant to sort out how domains are treated - as in dealing with reg fees, parking revenues, sales, affiliate income, etc.?