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

Sold for under $600

     
6:41 pm on Mar 4, 2010 (gmt 0)

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joined:Jan 17, 2008
posts: 161
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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?
6:52 pm on Mar 4, 2010 (gmt 0)

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WebmasterWorld Administrator lifeinasia is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Dec 10, 2005
posts:5551
votes: 24


(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.
6:57 pm on Mar 4, 2010 (gmt 0)

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joined:Jan 17, 2008
posts: 161
votes: 0


Answers my question, thanks LifeinAsia.
 

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