02 Taxes, Assets & Website Worth - GoFuckYourself.com

BluMedia · 02-26-2003, 06:57 PM

Ok trying to do taxes here oh what fun. I need to list new sites we bought as assets and was wondering how do you come up with a value of a website, domain, members, design etc. I know there is companies that can tell me what a domain is worth and usually it is some ridiculous amount, would I use that? Would I add in recurring members? How do you come up with a total asset net worth for a website? Anyone done this?

Thanks,
Mark

BluMedia · 02-26-2003, 07:32 PM

Any tax advisors anywhere, come on webmasters.

Mark

Gary · 02-26-2003, 07:34 PM

well, according to Ebay, 4 word domains are worth AT LEAST 40K

Kimmykim · 02-26-2003, 08:14 PM

I would talk to an accountant, you need to do some long term thinking on just how you handle this valuation

BluMedia · 02-26-2003, 08:25 PM

Kimmykim,

I did speak to an accountant but they really couldn't help me when coming up with a price each domain would be worth. They said just take the wholesale amount or fair market value. I know I can get an appraisal for domains but do you think that would that be enough if I got audited?

Mark

Saintgames · 02-26-2003, 08:27 PM

$8.95... that's what I paid for it.... =) I think I can write that off over 7 years too!

playa · 02-26-2003, 08:41 PM

dude less the assests the lesser the Tax,

shit man haven't you learned anything?

according to my accountant i lost money my last 2 years in business

BigFish · 02-26-2003, 08:51 PM

Domain itself should be valued at historic cost, eg. the price you paid for it. The say it's like a building, how can you ever get an accurate "fair market value" for the cost of the building every year? If you never sold it that means you never realized gain therefore you can't recognize it. As far is the current worth of the domain name and the popularity of your site, there is no such thing as internally created goodwill so you can't include that either unless you, again, realized gain. Recurring members is just regular income.

Pornkings · 02-26-2003, 09:03 PM

Quote:

Originally posted by BigFish
Domain itself should be valued at historic cost, eg. the price you paid for it. The say it's like a building, how can you ever get an accurate "fair market value" for the cost of the building every year? If you never sold it that means you never realized gain therefore you can't recognize it. As far is the current worth of the domain name and the popularity of your site, there is no such thing as internally created goodwill so you can't include that either unless you, again, realized gain. Recurring members is just regular income.

Its normally the cost to build the site, price you paid for domain
and three times the revenue you bring in Monthly from your members

BJ · 02-26-2003, 09:04 PM

Quote:

Originally posted by Pornkings

Its normally the cost to build the site, price you paid for domain
and three times the revenue you bring in Monthly from your members

hmm interesting

BigFish · 02-26-2003, 09:09 PM

Quote:

Originally posted by Pornkings

Its normally the cost to build the site, price you paid for domain
and three times the revenue you bring in Monthly from your members

That's how much you would 'value your site' if you were to sell it to another party, not report to the IRS. Cost to build is an expense, domain name is an asset since it brings with it future benefits so it should be valued at historic cost, and recurring members are a part of regular income.

Pornkings · 02-26-2003, 09:11 PM

Quote:

Originally posted by PureMeds

hmm interesting

atleast in the adult realm

If its a one word domain like teen or Erotica it depends on type-in traffic etc.

BJ · 02-26-2003, 09:14 PM

Quote:

Originally posted by Pornkings

atleast in the adult realm

If its a one word domain like teen or Erotica it depends on type in traffic etc.

I guess my question is based on that equation would someone acquiring the business or site pay less or more than that.

horns · 02-26-2003, 10:12 PM

02-26-2003, 06:57 PM	#1
BluMedia Confirmed User Industry Role: Join Date: Dec 2002 Location: Colorado Posts: 3,973	02 Taxes, Assets & Website Worth Ok trying to do taxes here oh what fun. I need to list new sites we bought as assets and was wondering how do you come up with a value of a website, domain, members, design etc. I know there is companies that can tell me what a domain is worth and usually it is some ridiculous amount, would I use that? Would I add in recurring members? How do you come up with a total asset net worth for a website? Anyone done this? Thanks, Mark

02-26-2003, 08:27 PM	#6
Saintgames Registered User Join Date: Nov 2002 Posts: 43	$8.95... that's what I paid for it.... =) I think I can write that off over 7 years too! __________________ I be Kozmo *I"ll show you the stars*

02-26-2003, 07:32 PM	#2
BluMedia Confirmed User Industry Role: Join Date: Dec 2002 Location: Colorado Posts: 3,973	Any tax advisors anywhere, come on webmasters. Mark

02-26-2003, 07:34 PM	#3
Gary Confirmed User Join Date: Aug 2001 Location: Kimmykims couch Posts: 6,110	well, according to Ebay, 4 word domains are worth AT LEAST 40K

02-26-2003, 08:14 PM	#4
Kimmykim bitchslapping zebras!!!!! Industry Role: Join Date: Jun 2001 Location: In a shack by the beach Posts: 16,015	I would talk to an accountant, you need to do some long term thinking on just how you handle this valuation

02-26-2003, 08:25 PM	#5
BluMedia Confirmed User Industry Role: Join Date: Dec 2002 Location: Colorado Posts: 3,973	Kimmykim, I did speak to an accountant but they really couldn't help me when coming up with a price each domain would be worth. They said just take the wholesale amount or fair market value. I know I can get an appraisal for domains but do you think that would that be enough if I got audited? Mark

02-26-2003, 08:41 PM	#7
playa Confirmed User Join Date: Feb 2001 Location: atlanta, GA Posts: 6,432	dude less the assests the lesser the Tax, shit man haven't you learned anything? according to my accountant i lost money my last 2 years in business

02-26-2003, 08:51 PM	#8
BigFish Confirmed User Join Date: Jan 2003 Location: United States of America Posts: 1,159	Domain itself should be valued at historic cost, eg. the price you paid for it. The say it's like a building, how can you ever get an accurate "fair market value" for the cost of the building every year? If you never sold it that means you never realized gain therefore you can't recognize it. As far is the current worth of the domain name and the popularity of your site, there is no such thing as internally created goodwill so you can't include that either unless you, again, realized gain. Recurring members is just regular income.

02-26-2003, 10:12 PM	#14
horns Confirmed User Join Date: Oct 2002 Location: where? Posts: 238	more