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How Much To Pay in Taxes for Selling a Website?

     
10:42 pm on Apr 29, 2007 (gmt 0)

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Any idea how much one would owe uncle sam once you collect funds for a website sale? Is is a fixed percentage rate?
11:22 pm on Apr 29, 2007 (gmt 0)

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If the sale qualifies for capital gains treatment, it is a fixed percentage depending on your tax bracket. The percentage would not exceed 15% of the gain. Howerver, if you fall into the alternative minimum tax trap - the effective percentage can be as high as 25%.
4:30 pm on Apr 30, 2007 (gmt 0)

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How the sale will be taxed depends on the tax treatment of the site up to this point. Consult with your tax advisor for how he/she has been treating the related revenue/expenses up to this point.