Tax time is here.

[Theo]

You can't avoid two things: death and taxes

 

[Dale Hubbard]

You can't avoid two things: death and taxes

Death can be forestalled (but not prevented) by medicine.

Taxes can be mitigated by judicious planning

 

[south]

Wow... good timely people here. I have filed my extension every year for .... hmmm. at least the last 7-8 years. Always end up doing it October 15.

 

[melmunch]

Sam Handwerger from hcfandl.com did my taxes this year. I can't recommend him enough. Getting advice from the forum is great, but I can't stress enough how important it is to have a quality accountant. Pays for itself 100 times over.

Also, many people are afraid to ask their accountants about tax avoidance strategies. There is really no shame in it, and anyone who makes real money from domains should be at least looking at these options.

Man Rock, I don't envy your nut to the tax man this year, but I don't see you making any fire sales.

 

[ck89102]

For those in the US, I highly recommend the Domain Tax Guide.

http://www.domaintaxguide.com/

I am in no way connected with the book but it is sophisticated and covers the bases. Since the thread was on taxes, then this mention is a must.

 

[GAMEFINEST]

If you make a lot every year, you can do quarterly tax filings from what I heard, please contact your accountant, I might be wrong, carry on.

 

[laur]

Guys help! What are the tax deductions for domainers? I bought 2 expensive domains, are those considered deductions? Thank you.

 

[Theo]

The cost for acquiring a domain is not deducted until you sell it or somehow dispose of it.

 

[maroulis]

The cost for acquiring a domain is not deducted until you sell it or somehow dispose of it.

partially wrong... again grey area but if you do park it or lease (monetize in any way) it can be written of as inventory

 

[Rockefeller]

Guys help! What are the tax deductions for domainers? I bought 2 expensive domains, are those considered deductions? Thank you.

Yes and no. If it was purchased "for" your business it is deductible.

 

[Theo]

partially wrong... again grey area but if you do park it or lease (monetize in any way) it can be written of as inventory

Not a gray area at all. If you write it off as inventory you need to devalue it each year but that's not easy to do with domains (unlike, say, homes).

But as Rockefeller said, if your purchases were made with a company formation in mind, then it can be deductible.

I treat all my purchases and acquisitions as long term cost, to be deducted upon selling them. Monetization (e.g. via parking) has nothing to do with taxation of sales; it's regular revenue.