Webwork - 4:03 pm on Sep 18, 2004 (gmt 0)

I've been querying Google about this subject and I have yet to find anything definitive.

Here's some conundrums.

I buy Domain.com in the aftermarket for $25,000. and accidently allow it to lapse. The cost of avoiding the lapse was $9.00 - the renewal fee. Have I suffered a $25,000 loss that can be set off again gains or income?

I buy Domain.com for $25,000. In theory, my tax basis would be $25,000. The domain expires in 1 year when I buy it. What is the period for depreciation?

I renew the same domain for 100 years. What, then is the depreciation schedule?

I buy Domain.com for $25,000 and forget to renew it. It lapses after 1 year but I am fortunate enough to recover it by using a drop service for which I pay $60.00. Is my basis now $60.00? Suppose someone else picks up the drop/snap and I buy it from him for $2,000. What is my basis? Did I suffer a loss of $23,000?

I buy Domain.com for $25,000 and sell it for $50,000 8 months later. I guess then the increase is treated as ordinary income?

I buy Domain.com for $25,000 and sell it for $5,000. What's the tax treatment?

Is the basis whatever I pay for the domain or is it the fair market value of the domain? I buy Domain.com (maybe worth $5,000 FMV) from my friend Bob for a contract sales price of $1,000,000, payble in annual installments of $10,000. I allow it to lapse after 1 year. What's the tax consequences to my company and to Bob?

I buy Domain.com for $25,000. I die. As part of wrapping up the estate my heirs secure appraisals of assets to determine tax liability. The domain appraises for $5,000. Tax consequences?

Food for thought. I have been unable to find an opinion of a tax court, a letter ruling or opinion of a US District Court on the subject of tax treatment of domain sales, domain depreciation, etc.

Keep in mind that each country may vary in its tax treatment. (So, if you sense death is knocking at your door, do you transfer your domains to your cousin Bubba in tax friendly Elbonia?)

IF anybody can pull up an official government report or publication, or a written opinion of a judicial or administrative body that reviews issues of tax treatment of domain transactions it would be of some value.

Any search sleuths out there?