How do we account for domain renewals on IRS schedule C?

[sitemaker]

I'm confused about how to report my bookkeeping totals on IRS Schedule C.

Is there a difference between:

1.
buying (or hand-registering) a domain (whereby you are acquiring a transferrable right, similar to inventory).

2.
renewing a domain (whereby you are only preserving your right, but not increasing the value of the inventory).

How do these two different kinds of totals enter into part III of Schedule C?

Those of you who do indeed organize your domaining business in a business-like way, how do you do accounting for renewals?

For the buys and sells, it's like a brick and mortar retailer business acquiring and disposing of inventory. But where do the renewal costs (other than initial acquisition costs) get reported?

In addition to the domaining part of my schedule C business, there are web development projects and hosting going on for paying clients, and online advertising income (and expense). But accounting for that is fairly understandable.

The domain registration fees are what's confusing me. And they are significant enough that I want to report them the right way. No audits wanted.

Thanks for your attention and ideas.

--- J.

 

[dn-101]

The domain registration fees - capital investments
Renewals - business expense

Get yourself an accountant & don't waste time on this bs

Also the IRS accepts the accountant's filings easier than Mr Shmei Drei's

 

[BiggieBiggie is verified member.]

all purchases, renewals, etc are "internet expenses"


all sales/ppc revenue is "internet revenue"

the difference is profit or loss

 

[stock_post]

Just internet/Advertising expense.
and any revenue is advertisement based income.