Help, sold my domain name after 15 years, how do I file?

[dimost2]

These instructions are great, but unfortunately, not enough detail to actually find the form and where to enter the information. How can I get some help since my version of Turbotax for this year does not match the instructions given. Also, where is the "search" field? (Also, note FYI, domain names are not usually a one-time purchase. They are paid for year by year when the domain name renews on the domain name host.) 

Can I call someone? 

[PatriciaV]

The cost to renew a domain name is typically an expense to the owner each year. If you purchased the domain name for a fixed price in the first year, that would be your "basis" for the intangible asset. Most taxpayers don't capitalize domain renewal fees, so the basis remains the same.

Enter this transaction under the Sale of Business Property. 

The easiest way to find any section of TurboTax Desktop is to open your return and use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in the topic you need, hit Enter, and click the "jump to" link to go directly to beginning of that topic.

Or go to the left column in TurboTax Online and click on Tax Tools >> Tools >> Topic Search. Type in your topic, then click the topic in the list to go directly to the start of that section. 

It's very unlikely that you will receive Form 1099 for this sale. The form is reserved for certain types of earned income and real estate transactions, among others.

@dimost2 

[skydealer]

I was told by a tax attorney that domain names are considered an intangible asset.  When I sold my main domain name I paid a much lower tax rate because if this.

https://www.thetaxadviser.com/newsletters/2016/may/how-internet-domain-names-are-taxed.html also does into detail on this.

"CCA 201543014 addresses three issues regarding the acquisition cost of domain names. The first issue is whether the cost the taxpayer incurred to acquire a generic or nongeneric domain name from a secondary market and then used in the taxpayer’s trade or business is currently deductible under Sec. 162 or must be capitalized as an intangible asset under Sec. 263. The IRS concluded that the costs must be capitalized because the cost of the domain names will provide a future benefit to the user, regardless of whether the domain name is generic or nongeneric. Therefore, the cost of the domain name should be capitalized under Sec. 263. Sec. 263(a) provides that “no deduction shall be allowed for—any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate, … [or] any amount expended in restoring property or in making good the exhaustion thereof for which an allowance is or has been made.”

Additionally, Regs. Sec. 1.263(a)-4(b)(1)(i) requires a taxpayer to capitalize any amount paid to acquire an intangible, and Regs. Sec. 1.263(a)-4(c)(1) also provides a taxpayer must capitalize amounts paid to another party to acquire any intangible asset from that party in a purchase or similar transaction. Clearly, the IRS takes the position that a domain name is an intangible asset in which the costs must be capitalized under Sec. 263 and not deducted currently under Sec. 162."