I have someone interested in buying a website that I (my company) owns. But my Accountant has told me that If I sell it, I would have to pay 0,000 in capital gains tax. I don’t really get how this is a capital asset. It’s electrons flying through hyperspace…
I don’t see how this should be treated any different than if I were to sell a widget. If I buy a widget, it becomes an asset of mine. If I sell that widget for 3x what I paid for it, that is considered a sale, not a capital gain. And I only pay tax on the profit I made, if any, and only after I factor in all my expenses.
So what qualifies this as a capital asset? The Domain? The Registered Users? The Source Code? The Traffic? The Google Page Rank? The Brand Name? The Database? Or is it a combination of everything?
I don’t see how this is any different than a widget.
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