MaverickCasino.com

Domain names are generally treated as capital assets by the IRS. If the domain name has an indefinite life (like a brandable .com), it is not amortizable unless certain conditions are met. But there are creative structures where the buyer can deduct the cost over time—or even immediately, in some cases.

✅ 1. Structure the Sale as an Asset Acquisition for Business Use

If the domains are used in the buyer’s business, they may be classified as intangible assets under IRC §197.

➕ Outcome:

The buyer amortizes the cost over 15 years, taking a tax deduction each year for 1/15th of the purchase price.

✅ 2. Bundle the Domains with a Business or Marketing Package

Structure the transaction so the domains are part of a marketing package or consulting deal that includes:

• Business strategy

• Branding/licensing

• SEO content or traffic analysis

• Creative services tied to the domain

➕ Outcome:

The entire package can be treated as a deductible business expense—fully or partially—under IRC §162 (ordinary and necessary business expenses), especially for consulting and marketing services.

✅ 3. Lease-to-Own (with Option to Purchase)

Instead of an outright sale, structure a lease agreement with:

• Monthly payments (which are fully deductible business expenses for the buyer)

• A final option to purchase at a pre-agreed amount

➕ Outcome:

• The lease payments are fully deductible.

• The purchase price is capitalized, but depreciation/amortization kicks in after acquisition.

• This method spreads deductions and minimizes upfront tax burden.

✅ 4. Donate the Domain(s) to a 501(c)(3) and Sell Marketing Rights

If you own or are connected with a qualified nonprofit, you can donate the domain and then have the buyer:

• License or lease the domain from the nonprofit

• Make tax-deductible contributions or payments to the nonprofit in return for naming rights, branding, etc.

➕ Outcome:

• You get a charitable deduction (consult limits).

• The buyer writes off licensing or marketing contributions if properly structured.

⚠️ Risk: Must be carefully done to avoid IRS scrutiny of self-dealing or valuation abuse.

✅ 5. Sell Through a Corporation With Strategic Accounting

Sell the domains via a C corporation or LLC that bundles:

• The domains

• Content/IP

• Brand value

The buyer buys the company or its assets. You may set this up so:

• The buyer allocates the purchase price across depreciable/amortizable assets

• A tax accountant helps them maximize deduction timing

📌 Important Tax Note:

• Domain names used for resale (domain investors) may qualify as inventory and be 100% deductible at cost.

• Domain names used in a business are treated as intangible assets, so amortization typically applies.

• Generic vs. branded domains may be treated differently.

🛠️ Action Plan

1. Get an appraisal of each domain from a reputable source.

2. Hire a CPA and tax attorney to draft a sale agreement with proper tax language.

3. Consider an LLC or C-corp as the selling entity to give flexibility in deal structure.

4. Offer three purchase options to the buyer:

   • Straight sale (with amortization)

   • Lease-to-own (fully deductible monthly)

   • Bundled service contract (immediate deduction)