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  1. #1
    ABW Ambassador Snib's Avatar
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    I've got a tax question that maybe somebody can help me out with. I'm negotiating purchasing a website and am curious how I should draw out the deal? I want to make sure this expense is tax deductable because it is a nice chunk of change. Should I ask the seller for an invoice which I can use for my taxes? What problems might I want to avoid in purchasing a website? I've looked into the traffic, seo placement, etc and it all looks good. I'm just talking about the details of the sale.

    Thank you!
    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  2. #2
    MasterMike HardwareGeek's Avatar
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    Always get something in writing. also make sure the domain transfer is complete before you pay.

  3. #3
    ABW Ambassador Snib's Avatar
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    Thanks for the tip!
    Hatred stirs up strife, But love covers all transgressions.

  4. #4
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    I'm not sure how much luck you will have getting someone to transfer a domain to you before you pay....I know I wouldn't.

    If it is serious money, you probably should think about using Escrow.com or some other reputable escrow company.

  5. #5
    Content $ Queen Ebudae's Avatar
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    I used Escrow.com when I was buying a domain and it all went very smoothly.

    They make it very easy to understand and make sure you are protected (and your money)

    You can also print out reciepts from them to use at tax time.

    I was kinda nervous cuz it was the first time I had done this and it was also a lot of money but they made it simple and safe!
    Ebudae


  6. #6
    ABW Ambassador Snib's Avatar
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    Looks like they take about 3% of the transaction amount. This is so I can have a valid receipt and sign a valid contract that we both agree upon? If I wanted something more low key, couldn't I just use PayPal? I guess it depends on how much it's worth to you.

    Thanks guys!
    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  7. #7
    http and a telephoto
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    A bill of sale should be a valid receipt, but you could check with your accountant to be sure.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  8. #8
    Member
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    I'm in the process of selling off part of my wireless company division and I learned that having your lawyers work with the buying parties end works nicely. I also agree with the whole idea of not transferring any virtual property before you know it's all a green light, this of course is not the easiest,however, talk to your lawyers and ask them what they feel best. Also ESCROW is the way to go, it's worth paying a third party to help in this matter if you can.

    Just some ideas and best of luck.

    Rarevos

  9. #9
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    What types of domain(s) are you looking to buy?

  10. #10
    I like traffic lights
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    >also make sure the domain transfer is
    >complete before you pay.

    Goes against all industry standards. Usually it's either money gets paid first then domain is transfered, or escrow is used.

    As far as tax deductibility is concerned, you should be asking your accountant. Different parts of the assets yoou are buying might be best treated differently for tax purposes (ie website contents, domain name, value you are paying for the domain name over and above it's actual lease cost, goodwill, etc.

    Get it all wrong and you could end up paying more tax than the website cost you.

    TALK TO AN ACCOUNTANT WHO SPECIALISES IN I.T.

  11. #11
    ABW Ambassador Snib's Avatar
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    Drewbert,

    Now I'm a little concered because I am paying for website contents, but the value of the domain name is less than I'm paying. I doubt I'd buy a site for more than it's worth.

    I need to find myself an accountant. I only just graduated from college last year so I'm fairly new to the business world.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

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