Assets sold by a company are sold as long term capital gain assets. Unfortunately, you were correct about the placement. Virtual assets receive the same treatment as physical assets on your tax return.
On the upside, the tax rate on a long term asset is only 10% so your tax bill is relatively small. On the downside, you will pay tax on the entire $29,200 that the IRS views as profit on the sale of your domain.
Domain flippers do pay a much higher tax rate, though.
@EricDraven
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