Tax question

[electrowerks]

I have a tax questions regarding domain names.
How do you expense a large domain purchase?

Each domain as an "intangible asset" to be amortized over 15 years?
or just enter each domain as a misc. expense?
or expensed as something else?

Any help would be greatly appreciated.

 

[actnow]

Does anyone know of any tax rulings or IRS opinions (letters) regarding domain name
valuation?

 

[DMC11]

Along the same lines, does anyone have experience regarding the best type of corporation to use for 'domaining'? I recall reading about an IRS code regarding passive income and the use of 'S' corps ---- something to the effect of no more than 20-25% of the corps gross income could be derived from passive income. Does that mean an LLC or true Corp is the best option?

I'm open to any & all feedback.

Thanks