Selling a domain?

Taxes, etc.

[Nick Jachelson]

I registered a .com domain name last year thinking I might set up a site for it one day, but never got around to it. It just sat there with the default GoDaddy homepage.

Yesterday, I recieved a phone call from a guy offering to buy it for a few thousand dollars! Sensing that he was really interested I tripled his price. He agreed and when I got home I noticed I had several thousand dollars in my PayPal account.

Later I found out this guy is pretty famous and I actually saw him on TV doing infomercials. He is the owner of a similar .net domain.

Since this is a pretty big sum of money, I'm pretty sure I will have to pay taxes on it. But what kind? Capital gains? Sales?

Thanks for any help.

[Lobo]

Shut Up! spend it :)

[cerebrum]

Use paypal money as a "HOT MONEY". Keep in it and buy everything you want online through paypal.

Congrats for registering a goldmine domain. Can you say something about your domain without revealing particular details like how many words, letters? Which industry sector and so on...

[Webwork]

Please don't counsel others to commit tax fraud.

Consult with an accountant.

Domain sales are either taxed as ordinary income or capital gains. Income, of course, is subject to business expenses.

[Nick Jachelson]

It was related to money/investing.