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Sale of internet domain name, tax treatment

I received an offer to sell one of my domain names that I have owned since, I think, 2001. (not algebra.com for those interested).

I would like to treat the sale as capital gain -- gain on sale -- rather than revenue. I believe that this would tax the sale at a better LT capital gains rate.

Would you think that such a sale qualifies as a long term capital gain. If so, just what constitutes the cost basis. I would think that my payments to the registrar are included into cost basis. What else might be included? How about prorated colocation fees?

Thanks

i
Reply to
Ignoramus14654
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Yes, it's a capital asset. Only the initial application fees are capitalized. The annual renewals are operating expenses and not capital. The coloaction fees are also operating expenses and not capital.

Reply to
Charlie K

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