I sold my first domain! Do I have to pay taxes?

Sold for under $600

[anon123]

Hi everyone,

So I thought I'd try my hand at picking up dropped domains. I used Pool.com and ended up getting what I thought was a pretty decent domain for $30 bucks.

I then emailed people I thought would be interested in the domain and ended up selling it on Sedo today for $500!

Now I'm wondering, since this under $600, do I have to pay taxes on it?

[LifeinAsia]

(Based on U.S. tax law- YMMV.)
It's factored into all the other revenue/expenses associated with your business. If you do nothing else, you've made a profit of $470.

Are you required to pay taxes on it? Maybe. (It depends on your other income/deductions.)

Is the IRS going to know about it if you don't report it? Doubtful.

[anon123]

Answers my question, thanks LifeinAsia.