All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Reply
Highlighted
Pioneer
Posts: 2
Registered: ‎09-10-2017

Domain name sales

[ Edited ]

Are domain name sales treated as income? Where does this need to be reported? Can I also report the initial price I paid for the domain, and the annual fees I pay for renewing it to get a deductible, and if so, where do I report this information? 

Tax Pro
Posts: 5,536
Registered: ‎02-23-2016

Re: Domain name sales

HI carolynsinman,

 

 

Welcome to the H&R Block community.

 

A domain name is considered an investment instrument and it's sale should be reported on Form 8949 and any gain from the sale should be carried to Schedule D.  On Form 8949 you'll report what you paid for the domain name when it was registered and then also the total amount you received from the buyer.  The difference is taxable gain.

 

Note that if the domain name was held for more than a year then it is a long-term gain, but if it was held for a year or less then any gain is short-term gain.  The difference is that you get a special tax rate on long-term gain.

 

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)