Comments on: Donating Domains to Charity Isn’t an Instant Tax Break http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/ News and Views for the Domain Name Industry Tue, 14 Feb 2012 02:35:46 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrew http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/comment-page-1/#comment-139270 Andrew Thu, 24 Jan 2008 22:47:49 +0000 http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/#comment-139270 Stacey, I believe the answer is yes, and they would have to pay prize tax -- not income tax. Stacey, I believe the answer is yes, and they would have to pay prize tax — not income tax.

]]> By: Stacey R. http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/comment-page-1/#comment-139241 Stacey R. Thu, 24 Jan 2008 22:06:57 +0000 http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/#comment-139241 Interesting piece, the IRS will always get you one way or another. What about if you plan on selling a domain and the proceeds go to charity? In other words, you are selling a domain (one which you paid for, built and got it sold) and 1/2 of the proceeds go to several charities would you be liable for that part of the sale? An example would be the sale of this domain. http://www.mostexpensivedomainsold.com/ Once sold, 1/2 goes to charity, 25% to first place, 10% to second and 5% to third place in a raffle based on the number of traffic its affiliates brought in. My assumption here (I'm no CPA either) is that those winners would be responsible for their own winnings. Interesting piece, the IRS will always get you one way or another. What about if you plan on selling a domain and the proceeds go to charity? In other words, you are selling a domain (one which you paid for, built and got it sold) and 1/2 of the proceeds go to several charities would you be liable for that part of the sale?

An example would be the sale of this domain.
http://www.mostexpensivedomainsold.com/

Once sold, 1/2 goes to charity, 25% to first place, 10% to second and 5% to third place in a raffle based on the number of traffic its affiliates brought in. My assumption here (I’m no CPA either) is that those winners would be responsible for their own winnings.

]]> By: Editor http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/comment-page-1/#comment-20847 Editor Fri, 15 Dec 2006 15:17:28 +0000 http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/#comment-20847 You can get a statement from the non-profit saying they intend to use, not sell, the domain name. However, this could in effect lower the value of the asset you donated (according to an example given in a recent Forbes article) because its use would be restricted. You can get a statement from the non-profit saying they intend to use, not sell, the domain name. However, this could in effect lower the value of the asset you donated (according to an example given in a recent Forbes article) because its use would be restricted.

]]> By: Arlo http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/comment-page-1/#comment-20846 Arlo Fri, 15 Dec 2006 14:45:43 +0000 http://domainnamewire.com/2006/12/14/donating-domains-to-charity-isnt-an-instant-tax-break/#comment-20846 Wow, talk about being at the mercy of somebody else! I don't quite see how it's legally conceivable that you can be penalized for somebody elses actions after the fact :( Wow, talk about being at the mercy of somebody else!

I don’t quite see how it’s legally conceivable that you can be penalized for somebody elses actions after the fact :(

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