Tax question

[rpoko]

If I sell a domain for , let's say $25,000, then buy another domain for $25,000, do I need to pay taxes on any profit from the first sale?

 

[GT Web]

no, because at the end of the day $25,000 is your income and $25,000 is your expenses

you only pay tax on profits...meaning if you profit is $0 than your tax is $0

 

[Garry Anderson]

GT Web> no, because at the end of the day $25,000 is your income and $25,000 is your expenses - you only pay tax on profits...meaning if you profit is $0 than your tax is $0

So when he sells other domain for $30,000 - he only pays tax on the $5,000 profit?

;-)

 

[Theo]

GT Web> no, because at the end of the day $25,000 is your income and $25,000 is your expenses - you only pay tax on profits...meaning if you profit is $0 than your tax is $0

So when he sells other domain for $30,000 - he only pays tax on the $5,000 profit?

;-)

It's all Mathematics 101 :-D

 

[jberryhilljberryhill is verified member.]

Anyone needed a reliable answer on this topic absolutely needs to consult with a competent professional familiar with the laws of their own jurisdiction. Depending on the nature of one's business, there are several different ways for accounting domain costs, but there is not a one-size-fits-all answer to the question generally stated above, and certainly not one that is going to apply across borders.