Are domain names taxable in the US?

Question

If I own a high value domain, do I have to pay any kind of property tax on it?

If I register a domain for $10, and later sell it for $20000, is there any sales tax to be collected?

I live in California. But I assume these types of questions apply to anyone.

Alberto · Accepted Answer

You have to pay tax on the capital gains. Not really that there is a sales tax. But you made an investment and made profit.

Answers