Domain Business Tax Tips

[daniel]

Hi - With 2007 coming to an end, i wanted to pool the forum on some tax tips for the industry. If members could please share some of the tax tricks they have learned over the years this would be of interest. Thanks

 

[Theo]

1. Incorporate
2. Hire a CPA
3. Document everything

 

[stock_post]

Can the Domain buy put into Advertisement account?

Or what is this shown as (What kind of Expense when you buy?)

I maninly have a consulting company and the domain buy(s) were shown by my CPA as advertisement expense!
- He is about 76 or 77 Year old..

I am not sure if that is the correct way to show that expense!

Any suggestions are welcome.

 

[cursal]

Can one Incorporate now & use it for 2007 taxes?
Or how does that work? Do you have to wait a year?

 

[karter9977]

I agree with Acro get a CPA and doc everything. I just hired a CPA last week and I am filing as an LLC.

 

[Theo]

Can one Incorporate now & use it for 2007 taxes?
Or how does that work? Do you have to wait a year?

Your incorporation costs are expenses for the year that you incorporate in.
Any other taxable income or expenses are based off the status you were in when they occurred.
Also the cost of hiring a CPA is a business expense, so that's a non-brainer

Can the Domain buy put into Advertisement account?

Or what is this shown as (What kind of Expense when you buy?)

I maninly have a consulting company and the domain buy(s) were shown by my CPA as advertisement expense!

There are a couple of different ways to expense the cost of acquiring domains. I find it easier to subtract acquisition costs from the selling price when such a sale occurs (and having held the domain for 1 year+1 day means that you'll only be paying 15% tax on that transaction). Renewal fees are expenses that are directly deductible as such. For an expense to count as advertising costs, you'd have to use it as such: advertising e.g. banners, promotions, yellow pages placement etc. Other expenses include office supplies, computer equipment (depends on the industry you're in), software, legal fees, postage, office furniture, web hosting cost etc.

 

[cursal]

Thanks Acro,

Looks like I will be incorporating by years end if I find the time.
Should have done this last year....

Any suggestion on where to file a quick and RELIABLE application?

 

[denny007]

1. Incorporate

Incorporate - yes, but in country with ZERO TAXES