How is everybody handling taxes when buying and selling domains. I sold a couple domains recently and am in the process of selling/buying more.
If I bought a domain for 1000.00 and decided to keep it, could I expense it as a lease i guess, since I really don't own it but really kind of renting it from the registar? Could I depriciate it if I decide to do nothing with the domain? If I register it for say 2 years would I split the "lease" over the 2 year period?
But if I turned around and sold it for 1500.00 then I would have cost of goods sold and a profit of 500.00 so I would pay taxes on the 500.00? In california do I have to pay sales tax on domains that i sell?
I'm confused. I have alot of questions for my accountant. I just talked to him, I'm not so sure he's up on this.
If I bought a domain for 1000.00 and decided to keep it, could I expense it as a lease i guess, since I really don't own it but really kind of renting it from the registar? Could I depriciate it if I decide to do nothing with the domain? If I register it for say 2 years would I split the "lease" over the 2 year period?
But if I turned around and sold it for 1500.00 then I would have cost of goods sold and a profit of 500.00 so I would pay taxes on the 500.00? In california do I have to pay sales tax on domains that i sell?
I'm confused. I have alot of questions for my accountant. I just talked to him, I'm not so sure he's up on this.
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