Domain investors can deduct these costs associated with their business.
The US tax returns are due on April 15 of this year, meaning that time is running out.
If you're like me and you're still waiting for investments on K-1, you can extend the deadline for filing your tax return by October 15, 2019. However, make sure that you make an estimated payment with your renewal request.
Hopefully you had a great year with your domain investment. While you work on your taxes, here are some business issues to consider. Please note that I am not a tax advisor. You should always check with a qualified tax advisor before submitting your taxes.
- Domain Conferences – Did you go to Namescon last year? Maybe an ICANN meeting or Merge? Add up the entry, hotel, airfare, and ground transportation costs to report on your expenses.
- Annual domain registrations – These add up! Get all your domain registration receipts together.
- Internet access – Regardless of whether you work at home or in the office, you should consider whether your Internet access bills should be deducted as an expense.
- Home Office – Do you have a room (or area) in your home that you use exclusively for your business? Talk to your accountant about taking a home office deduction (which may include some of your utilities and housekeeping). This deduction applies to both homeowners and tenants.
- Mobile phone – There are many domain transactions on the phone. If you use your mobile phone for business, you may be able to spend part or all of the amount.
- Domain Services and Software – Subscribe to DomainTools, Efty, Keyword Finder or other recurring services? Do not forget to check these issues.
- Web Hosting – Especially for Domainer developers, your AWS or hosting bill is an issue.
- Food and Entertainment – Did you go to a business lunch with someone? 50% of these expenses can be deducted.
- Legal costs – It's annoying to face a UDRP in 2018. The good news is that you can deduct these costs.
- Office Supplies – Even if you do not have an "office" yourself, you can use a variety of consumables when running your domain name business. Think paper, printer ink, etc.
- Tax Preparation Costs – You may have read that people can no longer deduct their tax prepayments. In my understanding, this does not apply to companies that pay a tax adviser to prepare their taxes.
- Corporate Tax – While state and local tax deductions are limited to $ 10,000, this does not apply to taxes paid by certain companies. Check with your tax advisor if this applies to you.