Report the adjusted basis and selling proceeds for the sale of the domain.
The adjusted basis will be your cost, less depreciation, plus any improvement costs added.
If you never reported the yearly expenses, you can amend your prior three year returns.
As a cash method Taxpayer, yearly business expenses need to be reported and taken the year they were incurred and paid.
If you never took depreciation you could "adopt a change in accounting method".
The IRS is very clear and strict when it comes to Depreciation and Depletion.
Taxpayers do NOT have an option of bypassing depreciation when selling an asset. The depreciation "CLAIMED OR THAT COULD HAVE BEEN CLAIMED" must be recaptured.
Please click on this link to learn more on your options.
@Chrissan1999
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
