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Here's one for you smart U.S. tax domainers out there:
I am filing my taxes (at the last minute, as usual) and am presented with a new issue. I only started accumulating domain names (to any large degree) in January of last year, and now have an inventory of over 300 domains, constituting an approximate retail value of between $1,000 (wholesale on a bad day) and $100,000 (retail on a good day). None of my domains are "appraised".
Anyone have any insight on how to report my inventory justly, while ensuring the lowest tax liability (both for 2003 and 2004)? I definitely took a loss last year in this area of my business, as I was in "acquire" mode, and sold very few domains.
Any help in this (or other domain-related tax issues) would be appreciated.
I am filing my taxes (at the last minute, as usual) and am presented with a new issue. I only started accumulating domain names (to any large degree) in January of last year, and now have an inventory of over 300 domains, constituting an approximate retail value of between $1,000 (wholesale on a bad day) and $100,000 (retail on a good day). None of my domains are "appraised".
Anyone have any insight on how to report my inventory justly, while ensuring the lowest tax liability (both for 2003 and 2004)? I definitely took a loss last year in this area of my business, as I was in "acquire" mode, and sold very few domains.
Any help in this (or other domain-related tax issues) would be appreciated.
