Tax Savings Tip for Domainers
November 25, 2008 by Rick Latona · 12 Comments
The time to start your tax planning for 2008 is now, not in April of 2009.
While many people have blogged about domains and the tax implications, I’d like to discuss a new theory. First, some background.
I’m not a tax expert and I don’t play one on T.V. These are my thoughts and opinions. Consult your own accountant before making any decisions.
If you buy and sell domains for a living like I do, domains need to be declared as regular inventory. They are not an expense. So, if I pay $30,000 for a name, that’s a transfer of capital. It’s no different than having cash in the bank. The only expense part of the transaction is the 8 dollars or so in transfer fees.
If you buy domains as long-term holds and you aren’t in the business of selling names but do occasionally sell names, you would most likely be taxed at capital gains which is 15% here in the States as of this time. If you are in the business of selling names, you’ll be taxed at full income which between State and Federal you could be paying north of 40% in taxes.
Now here is something you can do now to limit your burden. Start hand registering names like a mad man. I, for one, am going to try and pick up 50,000 names by the end of the year. Everyone of those renewal fees are expenses. For every $10,000 you spend on registration and renewal fees you’ll save $1500-$4000 in real money. I’ve sold so many names this year that I’m looking at fresh registrations as if they come with a 40% discount.
Don’t believe the hype that all of the good names are taken. If you think outside-the-box, you can easilly come up with enough names to fit your budget.
The end result is an even more powerful portfolio, bought at a discount and less money to Uncle Sam, or whomever your uncle may be where you live.
T.R.A.F.F.I.C. Down Under - Final Thoughts - Auction Results
November 23, 2008 by Rick Latona · 9 Comments
After sleeping a personal record of 9 hours on the flight home, I’m rested and getting back to work.
Overall, I’m very satified with the way the auction turned out. I have to admit my expectations were low. The timezone and the economy were certainly not on my side.
I’d like to also point out that the guys at Fabulous.com did a really incredible job throwing the show. It was certainly one of the best I’ve been to.
| AcidRefluxRelief.com | $600.00 |
| Adopt.com.au | $400.00 |
| Campsites.com.au | $1,300.00 |
| CharterAirplane.com | $2,750.00 |
| CR.com | $150,000.00 |
| Cuba.me | $600.00 |
| FreeCellMinutes.com | $400.00 |
| Friend.com.au | $3,500.00 |
| GasCost.com | $1,000.00 |
| GolfClubs.org | $5,000.00 |
| GranolaBar.com | $3,800.00 |
| History.com.au | $8,500.00 |
| Honored.com | $2,250.00 |
| InEarHeadphones.com | $420.00 |
| InfantFormulas.com | $500.00 |
| Inspecting.com | $2,000.00 |
| Instruments.com.au | $2,200.00 |
| Lousy.com | $3,750.00 |
| ManagingDiabetes.com | $1,100.00 |
| MealReplacement.com | $1,250.00 |
| MelbourneHousing.com | $300.00 |
| Monitors.net | $5,000.00 |
| Packed.com | $1,750.00 |
| Patients.net | $1,250.00 |
| ProBasketball.com | $5,500.00 |
| PsychicAdvisor.com | $2,250.00 |
| Returning.com | $500.00 |
| SanJuan.com | $150,000.00 |
| Settling.com | $710.00 |
| Sildenafil.com | $4,000.00 |
| SnowBoards.com.au | $6,000.00 |
| SoreJoints.com | $850.00 |
| StockExchange.com.au | $7,500.00 |
| StockInvestment.net | $710.00 |
| StockSymbol.com | $6,250.00 |
| Thinner.com | $15,000.00 |
| TomatoJuice.com | $5,250.00 |
| ww.com.au | $2,250.00 |
| Total | $406,390.00 |
Clearly the .au names were popular which shouldn’t have been a surprise considering we were in Australia. This only confirms my theory and supports my decision to focus solely on ccTLDs during my own show in Amsterdam this coming June. More on that coming soon.
Final Auction List FINALLY Released
November 17, 2008 by Rick Latona · 10 Comments
It’s been a marathon getting here, not a sprint. Air France decided to go on strike when I was leaving Europe so they had to hustle and get me on a Malaysia flight to Brisbane instead. Lost luggage, tired, etc. Anyway, I’m very sorry for the long delay but here is our short list of names we’ll be auctioning. To sign up and bid online you will go to www.proxybid.com/ricklatona.
The auction will take place Thursday noon Brisbane time. Please note that means that Brisbane Australia is GMT +10. For example, Altanta is GMT -5. So the auction, for most of us actually starts 9 p.m. on Wednesday for East Coasters in the States and for those of you on the west coast it would start at 6 p.m. For Europeans you would be looking at 2-4 on Thursday morning depending on where you are. Your best bet is to probably place proxy bids at the aptly named www.proxybid.com/ricklatona
Domains Reserve
| AcidRefluxRelief.com | No Reserve |
| Adopt.com.au | No Reserve |
| Aussies.net | 0 USD - 4,999 USD |
| Australians.net | 0 USD - 4,999 USD |
| Belgium.com | Reserve cannot be published |
| Brimbank.com | 0 USD - 4,999 USD |
| Brussels.net | 10,000 USD - 19,999 USD |
| Campsites.com.au | No Reserve |
| CharterAirplane.com | No Reserve |
| CharterPlanes.com | 10,000 USD - 19,999 USD |
| ChristianEducation.com | 10,000 USD - 19,999 USD |
| ChristianFriends.com | 100,000 USD - 199,999 USD |
| CR.com | 100,000 USD - 199,999 USD |
| Cuba.me | No Reserve |
| Fabrications.com | 5,000 USD - 9,999 USD |
| FaxOnDemand.com | 5,000 USD - 9,999 USD |
| FreeCellMinutes.com | No Reserve |
| FrenchRiviera.com | 100,000 USD - 199,999 USD |
| Friend.com.au | No Reserve |
| Gascost.com | No Reserve |
| GolfClubs.org | 5,000 USD - 9,999 USD |
| Gosford.com | 10,000 USD - 19,999 USD |
| GranolaBar.com | No Reserve |
| History.com.au | No Reserve |
| honored.com | No Reserve |
| inearheadphones.com | No Reserve |
| InfantFormulas.com | No Reserve |
| Inspecting.com | No Reserve |
| Instruments.com.au | No Reserve |
| LifeInsurers.com | 0 USD - 4,999 USD |
| Lousy.com | No Reserve |
| Macros.net | 0 USD - 4,999 USD |
| ManagingDiabetes.com | No Reserve |
| MealReplacement.com | No Reserve |
| MelbourneHousing.com | No Reserve |
| MO.com | 300,000 USD - 399,999 USD |
| Monitors.net | 5,000 USD - 9,999 USD |
| Packed.com | No Reserve |
| Patients.net | No Reserve |
| Pete.com | 20,000 USD - 29,999 USD |
| PoolTables.com | 400,000 USD - 499,999 USD |
| Porno.co.uk | 200,000 USD - 299,999 USD |
| ProBasketball.com | 0 USD - 4,999 USD |
| PsychicAdvisor.com | No Reserve |
| Rang.com | 0 USD - 4,999 USD |
| Repossessions.com | 100,000 USD - 199,999 USD |
| Rome.net | 25,000 USD - 49,999 USD |
| Returning.com | No Reserve |
| Rowers.com | 5,000 USD - 9,999 USD |
| SanJuan.com | 100,000 USD - 199,999 USD |
| Scores.tv | 20,000 USD - 29,999 USD |
| SeniorCitizen.com & SeniorCitizens.com | 400,000 USD - 499,999 USD |
| Settling.com | No Reserve |
| Sildenafil.com | 0 USD - 4,999 USD |
| Snowboards.com.au | No Reserve |
| SoreJoints.com | No Reserve |
| StockExchange.com.au | No Reserve |
| StockInvestment.net | No Reserve |
| StockSymbol.com | 0 USD - 4,999 USD |
| Tans.com | 40,000 USD - 49,999 USD |
| taxaccountant.com | 25,000 USD to 50,000 USD |
| taxaccountants.com | 25,000 USD to 50,000 USD |
| TomatoJuice.com | No Reserve |
| Venice.com | Reserve cannot be published |
| VideoPachinko.com | 5,000 USD - 9,999 USD |
| Wait.net | 0 USD - 4,999 USD |
| WW.com.au | No Reserve |
| WY.net | 10,000 USD - 19,999 USD |
Grey Goose and Domaining don’t mix well
November 11, 2008 by Rick Latona · 26 Comments
I should have lost the bet but I didn’t. In an effort to sell DayTraders.com to Jay Westerdal (founder of DomainTools.com), we decided to flip a coin over whether he got a screaming good deal or just a good deal. The value of the coin toss was $34,200.
Of course, all of this was happening about four hours into a night on the town in Cairo. Neither of us had any business making that bet.
I had suggested that we just flip once but Jay wanted to flip two-out-of-three. I lost the first toss then won the next two.
Jay is now the proud owner of DayTraders.com for the still very reasonable price and low multiple of $84,200.
How to .Tel the Difference
November 4, 2008 by Rick Latona · 11 Comments
One of the more interesting companies I’ve talked to during this ICANN meeting has been Telnic. On December 3rd they will start their sunrise registration of .tel domains. There are a few notable and fascinating things about this extension worth discussing.
The domains won’t be used for websites, per se. You won’t actually be using A records, C-Name records or MX records. You won’t have a hosting company. There will be no FTPing or html pages of any sort.
It’s always when you think you know a thing or two that someone turns everything upside down on you. While even rookie domainers quickly learn what A, C-name and MX records are, even the most savvy of us have never heard of NAPTR records. From what I understand, they are DNS records that can contain phone numbers, email address, links or other communication services.
In other words, they are using the central name servers to propogate out to the world’s DNS servers all of the content that any .Tel will display. If you visit hotels.tel you will be pulling the content from a name server near you, not from a hosting company.
Their goal appears to be to become the yellow and white pages of the 21st century. Besides business opportunities for people that want to setup and sell listings for hotels.tel or taxis.tel, they hope that companies will jump on board with names like microsoft.tel and post all of their contact information. As an individual you could put up your contact information along with links to your Facebook and/or linkedin.com profiles.
The jury, as they say, is out on this point. I think its important to distinguish .Tel from .mobi domains. The purpose of .mobi domains is to point to properly formatted mobile websites while the purpose of .Tel domains is to point to contact information and keyword for individuals and businesses and all information is immediately clickable for a “click-to-call” feature.
The technical aspects of how they are pulling this off, however, is nothing less than astounding. Someone may come up with very clever ways of monetizing a service like this if they think way outside the box like Telnic has.
They are not auctioning off premium names and will not be running a lottery system. When they start their landrush they want it to be a free-for-all. Those who snag the obvious premium names like hotels, taxis and common first and last names will certainly have sellable names on the aftermarket.
Looking for com in a Muslim World
November 3, 2008 by Rick Latona · 2 Comments
Walking the streets of Cairo reminds me a bit of Asian countries. Without Roman and Greek letters on signs it is nearly impossible to understand things other than familiar logos. I have no problem navigating streets in French, Spanish or other European countries but Arabic, Japanese and the like make you feel like you are truly on another planet.
While there may be .com and .eg (Egypt’s ccTLD, not a gTLD for examples) signs on the street, I haven’t seen any yet.
Of course I’ve also been wandering streets in a jet lag induced stupor. I arrived after an eight hour flight to Amsterdam and a nine hour layover in the same city. I woke up Sunday at 14:00 hours, just in time to go to the Egyptian museum on my one day off and stand in line until the museum closed. In fact, I haven’t really done anything here yet.
Today, however, marks the start of another ICANN conference and my first in eight years. I’ve got a big agenda and many things I want to accomplish this week. Fortunately, most of the signs in the hotels and airports are in English.
