Tax Implications of Domain Ownership and Sales

Domain names occupy an uncertain position in tax law, with treatment varying by jurisdiction and use case. In the United States, the IRS generally treats domain names as intangible assets: a domain purchased for business use may be amortized over 15 years under Section 197, while a domain sold at a gain is subject to capital gains tax — long-term if held more than one year. Domain investors who buy and sell domains as a primary business activity may be treated as dealers, subjecting gains to ordinary income rates and self-employment tax. Annual registration renewal fees are typically deductible as ordinary business expenses. [[domain-inheritance]] situations require estate valuation of domain portfolios. Cross-border domain sales under [[international-domain-law]] may trigger VAT or GST obligations in some jurisdictions, and [[domain-contract-law]] agreements should address tax allocation between buyer and seller.