If you sell a domain name you have owned for 13 years do you pay capital gains taxes on thoses monies?

Question

If not what taxes would you pay and if you sell the domain next year (2008) are you exempt from CGT under the rule that if you fall into the 10% to !5% tax bracket you pay no CGT in 2008. This would be in the United States.
Obviously we would make a profit from the sale of the domain name.

Answer 1

It's an asset, so yes, any gain is capital gain.

Yes, it's possible that if your taxable income is small enough, some of the gain will be taxed at 0% in 2008.

Answer 2

Yes it would be taxable income.

If the CGT year 2008 holds, then you'd be exempt from paying any tax. But don't count on it not being changed. But it's so close to 2008 now, you might as well wait until January to finish the deal - you don't have anything to lose as long as the customer will wait a couple weeks, and with a little luck you could end up being free from paying tax on the gain. I don't know how much money you're talking for a gain, but that amount will figure in to determining if you are in the 15% bracket or lower.

Answer 3

Are you considering buying another domain name? If so, look into performing a 1031 tax deferred exchange.

Yes, you would pay capital gains tax upon a sale.

Answer 4

you're able to owe capital tax at 15% on the a hundred,000 benefit once you sell it in spite of while she passes away. a much extra powerful plan is for her to maintain the identify in her call and in simple terms upload you because of the fact the beneficiary at her loss of lifestyles. it extremely is termed flow On loss of lifestyles or TOD. That way you nonetheless get the stepped up fee foundation to her loss of lifestyles cost to compute your benefit which could be 0 in case you offered it quickly after loss of lifestyles.

Answer 5

I recommend www.irs.gov or visiting your local irs office for help. You should be able to complete sched d, capital gains and losses yourself.