Vanessa A
Expert Alumni

Business & farm

Probably not.  Over the years, did you expense any of those costs?  If so, then no, you cannot add them back to the cost basis as you would be double dipping.  The cost of a server is depreciated over a 5 year period, this means, you should have already fully depreciated the server (unless you upgraded or got new in the last 5 years) 

 

Are you disposing of the server as well?  Any of the assets that you had or have that you are disposing of you would need to also report on form 4797. 

 

Also, when you purchased the domain, did you expense it?  If so, your cost basis would be $0.  Your cost basis is your cost minus depreciation.  So if you deducted that $800 in prior years, then you cannot deduct it from your current sale.  

 

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