If I reinvest profit from one domain into other domains, any tax?

[james2002]

If I reinvest profit from one domain into other domains, any tax to pay?

Also can I make it against my losses due to dropping the domains.

 

[cybershadow03]

I have the same question, a reply from anyone would be nice

 

[David.]

I'm also interested in this as well.

 

[stock_post]

http://www.dnforum.com/suggests/domaintaxguide_ebook.htm
This is being advertised on DNF now.

 

[james2002]

Has anyone tried that ebook?

 

[ptaylor]

You can reinvest your equity tax free through a 1031 exchange.

http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031

Perhaps someone can enlighten be why no one is doing 1031's in the domain market? Also, why no one is doing TIC's (tenants-in-common) deals where you could buy a fractional interest in a high priced premium domain?

 

[BobDiGiTaL]

Also, why no one is doing TIC's (tenants-in-common) deals where you could buy a fractional interest in a high priced premium domain?

there would be too many issues concerning who is legally responsible and who is the administrator.

 

[ptaylor]

TIC's are more complicated, but someone in the domain business could model it after the real estate business. A sponsor could buy a premium domain with a business plan to develop it and then sell fractional intest to investors who wanted to roll their equity tax free from the sale of their own domains. The sponsor takes a management fee and the investors own an undivided interest in the business and recieve their pro rata share of the profits and ultimate sale.

I understand TIC's would be a bit more comlicated, but why is no one using 1031 exchanges to defer payiing capital gains taxes?