Say I bought a domain last summer for $9.99 and sold it later for $50,000, how would that be taxed? Capital Gains? Or something else? Eg, how much of the proceeds should I set aside for Federal, State, and Local taxes at year end?
Anyone here sold domains at a profit and had to figure out taxes for them? Strangely, very little info on this subject on the net.
PS - Not sure if this is the best site for this question, but I see a few other questions here on the subject of selling and valuing domain names.