Originally Posted by DigitalPimp

In the US my understanding is if you are in the business of reselling domains it is treated as inventory and its cost is expensed when it is resold. Otherwise if it is being used to make money it is considered a 1231 asset that can be amortized over 15 years. The yearly registration or renewal fees can probably be deducted when they are paid. If an asset and it is ever sold for more than you bought it for, I suspect one will have to pay captial gains tax.