I would be hard to not mention its tax day here in the US. I always wait until today (or Friday) to get my taxes paid. Why let them have your money any longer than possible. Although they already get their money because I pay quarterlies. This year was a bit different in that Mr. Trump’s tax savings for the rich that I hear about turned out to be less than true. Evidently my wife and I are either not rich enough or too rich and moved into the tax bracket that they get a bigger pieced of the pie. I had to write a big check this year that was quite a bit bigger than normal. But it is what it is and nothing I can do about it.
There are a few ways to treat domains when it comes to taxes. Treat them as assets and depreciate them or you can expense them. I expense them. I treat them the same as my trees. I expect them to sell for quite a bit of money down the road but they also could die or domains could become worth a lot less or worthless. The most important thing you can do is stay consistent. If you switch how you treat your domains you are almost 100% going to get audited and dinged. It’s cheating if you switch. They each have their advantages and disadvantages and if you took advantage of one way and then switch to the other way to catch that advantage its not going to end well. For expensing domains I pay the piper when I sell it. Of course if I put it back into domains then my taxation is minimal. I do take some profit but eventually I hope that I will sell a lot more than I would want to put back in. That’s the beauty of having it as a side gig. I don’t have to spend the money on bills. I can reinvest it build the portfolio quicker. All that being said I can’t wait to have a seven figure tax bill. As long as it comes from having an 8 figure sales year.
PS: A new DomainSherpa should be up some time today. Was a good show and nice to have Andrew back with his amazing buys and sales. Mine not as exciting but a sales is a sale
Here are today’s names. Make sure to click on the names to see the current price and to help DSAD keep on keeping on.
Domain of the Day: Jehu.com Strong CVCV are $5K to 10K names…..or more
Quote of the Day: “If you’re dumb, surround yourself with smart people. If you’re smart, surround yourself with smart people who disagree with you.” – Aaron Sorkin
Namejet, Sedo, and other Names Up for Auction
BuyEco.com Sold for over $2500 in 2007
Marawanna.com I actually like this one. A complete misspelling but a great brand
Convertm.com Conversion site ready to be built
Suggu.com No bids on this nice 5L
DomainNames.de Reserve under $100
Handicapped.org Important name. Hope it goes to a good cause
RusticCabin.com Met reserve at $81. Sounds like a food manufacturer
FreestyleSkates.com Met reserve at $100 and will sell. I used to love to watch people freestyle skate in the park. Headphones on just dancing away without a care in the world
ChicagoAthletic.com 22 years old. Could be a brand or a gy
PharmLab.com I am going to say canna. I always say canna now
Haw.net Met reserve at $230
NeuroNurse.com 24 million results for this specialty nurse
PepperHat.com Means nothing but love it as a brand. Short and catchy
LimeHeart.com another similar name. Good two word brand IMO
Godaddy Domains With Multiple Bids
Zman.com Nice and short but me thinks that the price is coming from the history and backlinks
DJungle.com “Welcome to D Jungle !!!!! We got fun and games”
BarefootRunner.com Was a HUGE fad a decade ago. Still some doing it but will probably have to wait for next cycle up
AgileSecurity.com “Flexible security for an agile world”
Cr3ativ.com Not a huge fan of these skateboard/hacker names but this is decent. Just fails miserably in radio and even print
BeeMania.com You know I love bees and honey so I’m partial. But a few other bidders like it
WeLoveAnimals.com So many people would want this name. Hundreds of animal lovers out there
GameGiant.com Makes you sound bigger than you are. That’s what the Internet is built on
OnTimeDelivery.com I see this as a marketing name to stress that this is your emphasis. Of course nobody says JustALittleLate.com
MedicineMarket.com Nice pharmacy name. Online or brick and mortar
NameYourRoots.com Not exactly sure what this means but its memorable and sounds like you’re doing something important
StainGate.org This was a MacBook screen problem. Whoever used to own it thinks its over
BitcoinBillions.com Everyone’s goal
Usaba.com Sounds like an African food
CannaGuardSecurity.com With every canna growing facility comes a ton of security needs
EZGuard.com Another nice security name
BBQ.biz This is the kind of .biz name I love. Absolutely works for a company on their Pit Van
BabyKick.com Kids or infant brand
Godaddy Domains With One Or No Bids
LoyaltyLife.com Good loyalty program name. And there are plenty of those being created
BTrendy.com Sounds like a DJ or a fashion line
PassengerRights.com At the top of the news with all these airlines having problems
TeenageRiot.com Sounds like a 90’s pop band
QuickFlame.com Could be a brand or a torch or lighter of some sort
AffordableMediation.com Lets them know they can afford you right up front
PowerBills.com Energy management name all the way
SwarmTime.com the keyword swarm is used more in tech than in beekeeping
Tapru.com I like all domains with tap in them to represent mobile devices
LifeIsWork.com It is. But it doesn’t have to suck
BitcoinChecker.com Check your portfolio and prices here
SativaButter.com mmmmm. Grab IndicaButter while you’re at it
Slitta.com Cool sounding brand
KeyTask.com Productivity name
RealPaleo.com Paleo peaked but still hundreds of thousands that eat this way
Turfless.com Not grass, all plants
FlightJunky.com My favorite name on the list. No bidders
RootJet.com Makes me think of those root feeder rods that people use to root feed
The Rest of the Godaddy Names With Bids
QEIP.com has one of the best domain sales newsletters in the biz. Also taking listings of high quality
08142.com
1Miami.com
39gouwu.com
40432.com
533668.com
663378.com
75thstreet.com
Adota.com
AlbanyAutism.org
AmishFurnGallery.com
Avidco.com
BabyMalls.com
Bancocomun.org
BankTalk.com
Blakwolf.com
Bozhiyue.com
BrandVolta.com
BuzzGet.com
CannabisHog.com
CannaLearning.com
CarySoForEgon.com
Circc.com
CommunityPsychology.net
DBGear.com
DFS3.com
DLYongnian.com
Dose-Espresso.com
DrivelDrop.com
dsmeastsouthchamber.org
EgyptPack.com
EpicDJ.com
EquiLibriArte.net
Extreme40.org
FacesOfBerlin.org
Free-Solar-Panels.com
GAVJ.com
Glasesusa.com
GordoNerd.com
Guiasoncini.com
gw8q.com
hartlepoolsmaritimeexperience.com
hdjx8.com
HospitalNewspaper.com
Interights.org
IPConetwork.org
Ippie.com
ixllc.com
lct-ok.org
LitHeadphones.com
MaduroDice.com
MarylandCode.org
MassHealthBlog.com
MeltOurs.com
Metanoic.com
NBWantgo.com
NilaiHah.com
Novamma.com
nyzfj168.com
PioneerSolutionSinc.com
Popstarz.org
Qatk.com
Qutiao5.com
Reculture.com
ReykjavikCenterMap.com
SDamp.com
Serambinewstv.com
SFBarf.org
ShamelessGirl.com
sociofutebol.com
Tavess.com
TheBlueBeaters.com
TopPearl.com
TotalPetExpo.com
TTypo.com
v8589.com
VirtualShackles.com
WO318.com
XDOY.com
XGX0111.com
Xianheyu.com
YoungCourtesan.com
YUKQ.com
I am no tax expert. But a couple of things stand out to me.
1. I thought all domains were intangible assets that needed to be amortized over 15 years, not expensed on one year.
2. If you make a sale, aren’t you supposed to pay takes on the profits before buying more intangible assets?
I would love a detailed review of the new tax laws and how they effect domains, if anyone knows one. Very confusing info out there.
I am definitely not a tax professional either. I know how my accountant started our accounting for it in 1999 and we’ve kept it consistent. Definitely need to have a real accountant on this one.
The alternative i thought was COGS, but no expensing that up front either. Didn’t see any way around this.
One of us is in dire need of a second opinion. I just don’t know which one, ha.
Best to you Shane.