income tax and domain name sale in Canada?

Ok, this may come off as a stupid question but when one sells a domain name is it exempt from income tax? Is it exempt because it is internet related (in Canada). I am thinking that it would not be exempted from taxation...anyone? And what would the percentage rate be?

thx!

 

[Lats]

Good question!

And a side issue, does the local tax department go through your, say paypal, accounts?


Lats...

 

[dmyre]

I was informed by Paypal that they do not notify the IRS of any earnings though your account...

Additionally, Domain names can be used for Tax Deductions if you advertise non profit organizations. You can also lease a domain name to a non profit org for an annual tax deduction, however you must own the domain name for a minimum of 2 years prior to doing so.

As always, please do your due diligence for your own region.

 

[Lats]

Thanks for the info about Paypal.


Lats...

 

I'd be very surprised if domain income was exempt from tax anywhere (except tax havens perhaps) income is income whether it was earnt painting houses or selling domains .

 

[domainduck]

In the USA, domain name resellers should look at their collections as inventory. Registration fees are not tax deductible. Domains sold are taxable like any other income. Subtract your cost and pay taxes on the profit. If a domain name is allowed to expire, I think the registration fees are deductible as a loss, but I'm not sure? I'll check with my guy.

That's all I know.


quack, domainduck