I have the same problem as evil_. For many years in the past I have always filed using schedule C. But they have changed their website this past year and I'm unable to use it as I did before. It seems to me instead of them making it better for us using it they have made it much harder. None of their questions relate to intangible website names. They want to refer to us as RE dealers and the stupid questions they post for us to answer has nothing to do with domain registering and sales. Well, my answer is to get out of this business as soon as I can recover as much money as I can. At one time several years ago I had control over a thousand names and I sold many of them for a great deal of money. I was doing doing pretty good for a while until the registars started raising their yearly prices and before everybody started getting in for the easy money. When that happened it didn't take long for the short (and good) names to dissapear. I still have about 100 pretty good names I think are worth something to someone and I'm pitting them all on Sedo for auction from time to time. But I still have to find a way to get some credit from the IRS for my registering expenses. I'm glad thats the only expense we really have in this business. I'll keep watching this space in hopes someone can tell me the best way to make the IRS people understand what we're trying to do legally. So far they don't seem to want to help us at all. They really need to learn to talk plain english. to make our job easier.
