Do you have to pay Taxes after selling your business site?

14 years ago

If you're in the U.S. you do, uh huh. It's a capital gain, I believe.

Originally Posted by smolodoy

Just wondering do you have to pay taxes after selling a business site through flippa? Lets say I sold it for 100k, do I still have to pay taxes for it?

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jiantastic

14 years ago

yes you do have to pay the taxes. if only we can avoid taxes, we'd have so much more money in our pockets

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tomkane 14 years ago

Originally Posted by jiantastic

yes you do have to pay the taxes. if only we can avoid taxes, we'd have so much more money in our pockets

I am not familiar with the U.S. tax law but can't you "avoid" paying taxes right away by investing the money?
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palmer9999 14 years ago

Great thread I was only thinking about this the other day. I'm sure they wouldnt mind if you didnt pay taxes
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- tijja 14 years ago
  
  Yes, you do have to pay taxes on the profits. And for a site that is 100K I would VERY surprised if the buyer didn't get your tax ID or SSI so that they can write off the purchase on their own taxes and attribute the sale to you... in which case the IRS will know you sold the site and how much you made.
  
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gsheldon

14 years ago

Originally Posted by smolodoy

Just wondering do you have to pay taxes after selling a business site through flippa? Lets say I sold it for 100k, do I still have to pay taxes for it?

Of course, you have to pay your taxes. To ask this questions probably means that you need some assistance with minimizing your tax liability. Don't be afraid to seek the help of a tax professional. They are not that expensive, and they will save you money.

You want to (and must) pay 100% of what you owe - not 101% or 99%. Get help from someone that knows how to sharpen the pencil so you only pay what is required.

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Jake Gray

14 years ago

Just like everything else you buy, it's taxed.

Same thing goes for the internet.

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ajwilliams 14 years ago

In the US and most other countries, anything you receive of value, be it money, goods, services, anything from any source including paycheck, lottery, etc are taxable. The operative word here is "Value".

You must declare the above as income in one form or another. Depending on the form depends on the tax rate. Some things would be taxed as personal income and others might be taxed as capital gains. This is for you to determine by reading the several hundred thousand rules and regulations in the tax code (US). Or as some have suggested, get in touch with an accountant or tax specialist to determine what your particular tax obligation is. Simple, right?

So simple that billions of dollars are spent each year by individuals and companies to try to figure out what to pay and how to avoid paying. Join the club!!!

A J
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smolodoy

14 years ago

thank you for answering.. Few more questions but if you invest those money into something else? LIke purchasing another business or a house? Probably by purchasing a car you won't be able to write it off somehow right? Man thats alot of taxes to pay, crazy.

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Michael Oksa

14 years ago

Originally Posted by smolodoy

thank you for answering.. Few more questions but if you invest those money into something else? LIke purchasing another business or a house? Probably by purchasing a car you won't be able to write it off somehow right? Man thats alot of taxes to pay, crazy.

Yeah, you're right.

Better not make any money at all then. That way you don't have to pay so much in taxes.

Anyway...

I would HIGHLY advise you to get advice from a competent money professional. With all due respect, your question proves how badly you need to hire said professional. If you don't hire someone, then you are headed for very serious trouble.

Don't think that you can get out of it somehow.

Talk to your accountant or financial advisor first. Then ask them what you can do to protect as much of your assets as possible.

Seriously. Talk to a qualified professional.

Seriously.

All the best,
Michael

p.s. Seriously.

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convert2audi

14 years ago

If you live in US you have to pay taxes on almost everything so yea def on a sale of a website

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Linda_C

14 years ago

Originally Posted by smolodoy

Just wondering do you have to pay taxes after selling a business site through flippa? Lets say I sold it for 100k, do I still have to pay taxes for it?

If it's "income" - it's taxable. That's why they call it "income tax"

It sucks, I know.

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Kay King 14 years ago

You don't have a country listed - so how can anyone know what your tax system is?

I think in most countries if you have a sudden influx of 100k - you ARE going to be paying taxes. Welcome to real life.:p
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- Bill Farnham 14 years ago
  
  Generally someone paying that kind of money for a site is probably moving money from one investment to another investment in what is called "Like Kind" meaning you're trading one investment opportunity for another investment opportunity.
  
  So the tax structure is different, at least here in the US.
  
  I'm betting your question is hypothetical, but if you ever did sell a site for that much you would definitely want professional tax help.
  
  ~Bill
  
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Tsnyder

14 years ago

Originally Posted by smolodoy

Just wondering do you have to pay taxes after selling a business site through flippa? Lets say I sold it for 100k, do I still have to pay taxes for it?

If you're in a position to do what you described the
best thing you can do is stop asking for professional advice
from people you don't know on internet forums and call
a CPA or tax attorney.

What makes you think anyone here knows the correct answer?

Tsnyder

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Istvan Horvath

14 years ago

Chris,

and how is the capital gain defined in UK? In Canada, as in most of the countries is the profit made by selling an asset that was purchased earlier at a lower price.
E.g. bought a house for $100K... sold for $150K - capital gain $50K.

In the case of a website that didn't even exist before making it - I don't see the capital gain: it is more like selling a product. From the gross sales price you can deduct the expenses (domain, designer fee, content ghostwriters, paypal fee, listing fee etc.)
And selling a product goes under income tax.

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timpears

14 years ago

This is a question for a lawyer or accountant. Don't put too much faith in advice you get on forums.

Obviously if you made a profit on the site you will need to pay taxes, unless you live in The Bahamas or someplace like that which doesn't have income tax. Remember that you are only liable for taxes on the profit, so alal of your expenses to build the site are deductible. If you reside in the USA and you owned the site for at least a year, you get to claim that as capital gains, which means that you get to deduct either 60% or 80%, I forget which is right.

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Tim Pears

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iuditg

14 years ago

Yes you have to pay taxes, that's your income and Income = Taxes.
Different Countries have different rules so its better to ask someone from your country or you can always google

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chiwawa

14 years ago

You will pay tax if only you are in the US. You pay tax for almost everything you sell.

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Istvan Horvath 14 years ago

Originally Posted by chiwawa

You will pay tax if only you are in the US.

So, where do you live that aren't taxes? Let us know!!!!!!!
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joehobot

14 years ago

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Do you have to pay Taxes after selling your business site?

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