#11
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Re: How to declare income from selling a website
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[ QUOTE ] how about other income? [/ QUOTE ] There are obvious tax advantages if he can handle the sale as a capital gain, rather than ordinary income. [/ QUOTE ] Oh I understand what he was asking now. The cap gain rate on 1+ year gains is only 15% and there are no self employment taxes on that either. It is the way to go (assuming it is the proper way). |
#12
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Re: How to declare income from selling a website
Looks like you got the answer you needed. Sorry my uncle was busy with the extended deadline and wasn't able to get back to me until yesterday. For further clarification this is what he said.
"If it is an existing website and you are selling them the rights to use it and you are using it, then it is intellectual property making it a Section 1231 asset and subject to capital gain rates." |
#13
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Re: How to declare income from selling a website
Thanks for asking, I did it just as your uncle stated.
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