Tax ???

[dkny]

recently I bought a domain from Korea for $10,000 and sold it to U.S. company for $25,000. Both transactions were paid via wire transfer.

Do I have to pay tax for the profit? How does this work?

 

[GeorgeKGeorgeK is verified member.]

Yes, you always need to pay tax on the profit. Can write off your other expenses, though.

 

[dkny]

So, if the transaction was done outside the U.S. then the reseller doesn't have to pay tax, right?

 

[jberryhilljberryhill is verified member.]

Your profile indicates you are in New York. You darn bleeding well had better report your income to the IRS. It doesn't matter where the 'transaction was done', the question is "did you derive income".

 

[Fearless]

Do you look good in stripes?

 

[GiantDomains]

 

[RMF]

Oh come on, its domain names. You don't have to pay taxes on domain names

RMF

 

[Lew]

You certainly have to pay taxes on the gain, but depending on
your situation, you might want to call it a capital gain or you may wantYou certainly have to pay taxes on the gain, but depending on y to call it ordinary income.

Seek some tax advice from a CPA - you can save yourself a lot of money in taxes

 

[Lew]

hmmm - that didn't come out right....


You certainly have to pay taxes on the gain, but depending on
your situation, you might want to call it a capital gain or you may want to call it ordinary income.

Seek some tax advice from a CPA - you can save yourself a lot of money in taxes


Thats better!

 

[GiantDomains]

dkny....

if they were wire transfers, anything over 10,000 is immediately reported to the IRS....

so if you don't claim it this year... they will eventually get you. May be a few years from now, but they will <evil laugh>.:evil:

 

[RMF]

The government can take their taxes and shove it up their......yowzers!... Don't you just get sick of paying taxes?.. Thats it!, im moving to Japan!..

RMF

 

[President Gringo]

and the japs don't pay tax huh?

Saudi Arabia would be better as Income tax is 0%

 

[DotComster]

Originally posted by President Gringo

Saudi Arabia would be better as Income tax is 0%

Shhhh and Arabia is not the only one either

Thank God for retarded 3rd world country tax and accounting systems !