Domaining, Taxes,…

I’ve been working on a very long blog post for the last few days now — essentially a summary of everything that’s happened in the LLLL.com market since November 2nd, an up-to-date analysis of where we are today, and some advice on how to better invest for tomorrow. Still needs alot of work (draft is 9 pages in size 10 font) but it will be released with the April Price Guide on Saturday, April 5th. There won’t be much to see here until then — I’m incredibly busy at the moment getting BQB ready for launch in late May… My incorporation went through a few days ago, so I’m now BQB.com Inc 😉

Ended up costing me ~ $400 (did it myself without a lawyer)… I really should have taken care of that a L-O-N-G time ago. Tax time’s coming up here and I’d really recommend everyone speak with their accountant about how their domain earnings should be treated. My accountant is under the impression that a one-time large speculative move (such as a large investment in LLLL.coms) may be treated as a capital gain for tax purposes if you weren’t doing a ton of buying/selling (eg. domaining was a hobby that suddenly “paid off”) beforehand. Canada’s more forgiving than the IRS when it comes to taxes, so I wouldn’t recommend playing games with them come tax time, but if you’re Canadian and you weren’t doing much domaining beforehand, ask your accountant. Moving forward, incorporate yourself so you don’t get hit again next year!

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~ by Reece on March 27, 2008.

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