Just got this in an email.....its not free information and it claims to be for US only but you might get some usefull information from it or the author...i am not an affiliate just an information trader...lol.
IT'S TAX TIME FOR DOMAINERS!.
Learn how to classify domain income, deduct domain expenses and.
Report capital gains & losses. Get the only CPA-written tax guide.
For the domaining industry. http://DomainingTaxGuide.com (USA only)..
It really depends on what country your from... I have no clue on Italy's policies regarding domain name parking it looks like it is undecided either way...
In some countries, domain names are treated as an asset, in which case you would need to pay taxes on the profits you make, although they would be treated as capital gains and hence a lower level of taxation. In other countries, the situation is avoided entirely, and in others, they need to be reported as an additional source of income (i.e. a miscellaneous income tax form) but NOT as a job. I'd suggest speaking with a lawyer... This is not the kind of thing you want to screw up on, but you should definitely be able to at least put up a reasonable case that in your view, domain names constitute a form of 'virtual property' and that the way you used them was not in any way akin to a job. Of course, they might try to flip it the other way and say that your friend's role was akin to a landlord of virtual real estate and hence taxable... It will be a very hard to win, although I do wish you the best of luck!..
Can you explain more about this whole situation came up?.
Here's an archived Sedo landing page: http://web.archive.org/web/200605181...ww.alumni.org/..
First of all, sorry for the mistake, for some reasons the link gets displayed in the wrong way..
In few words, I need to find a domain actually parked on Sedo which displays the same template of agenziadogana.it of Dec 2005 (you can see it in archive.org or just copy on the ame line the 2 following urls: http://web.archive.org/web/20051231062320/ http://www.agenziadogana.it/.
Thanks for your first useful feedback, we'll use any info to make some extra researches for our case..
I'm currently not authorized, for privacy reasons, to make the whole case a public matter but I'll be more than happy to do it in a second time.
The real problem about the "second job" has nothing to do with taxation, no problem for my friend in paying taxes over his revenue but, due to the nature of his current first job, it's illegal for him having a second job indipendently by the circumstamces while he might have a second revenue (if not considered as a real job) and demonstrating this fact would solve the problem (accusations are many and of diff. kind, for now we're pointing our attention on the above point).
Second problem: Here in Italy there's a big ignorance around web domains, parking etc ... He had a domain parked at Sedo (I can't mention it) and he has been sued due to various fake accusations (including the fact of "taking sports bets", "instigation to prostitution" etc ...).
Now is an evidence (for us, not for the court) that it's all a big equivocal: the domain was parked at Sedo with external links and Sedo wil also release a declaration in his favor taking all responsabilities of the case, there was absolutely no escort/prostitution related link but just some legal dating links, there were some betting links (betting is 100% legal in Italy too)..
In few words, there're tons of fake accuations, he'll have to fight hard and to spend a lot of money only due to a general ignorance about the web in general.
Sorry for my poor English but I hope to have clarified, at least in part, this particular and serious case...
Here`s me thinking that Irelands a bit backward when it comes to the internet, but it's not that backward. Can you not find anything in googles terms and conditions of delivering advertising links to sites, through adwords/ adsense.
Your link to friends site is dead. Sounds like Italy is far behind the global onslaught of the internet...
You are looking for an archived portol Sedo landing page. Sorry, I don't have any domains that come to mind. I am sure there has to be some NP member that has a portol page and archive.org has a history of it. Just keep asking around...
I think dealing in or parking domains should be considerde in the same way that stock investments are considered.
The thing with a second job which can make things difficult for the first job is that the employee may have time and location commitments for the 2nd job which interfere with the first.
This is not the case with investing - research can be done at any time or not at all. Similarly with domaining - the work involved with domaining can be done at anytime, or not at all.
Just say it's your friends hobby ...
There is nothing wrong with making money from your hobby ...
Instead of collecting valuable paintings, money notes, number plates ... you collect domain names as your hobby.
It is your leisure activity ...
My question to you ... how did they ever found out about this in the first place? Rosh..
I see what he`s getting at now, so if your friend was to invest in property, like buying a second home to renovate and resell in his spare time, would this be regarded as a second job by his first job in Italy?.
To be totally honest I cant answer or advise on your situation, I dont know the laws of italy, in Ireland I would be regarded a company with all earnings taxed, this is the cheap way to do it. If I was to remain making money from parked pages without forming a company, the income would go on my tax document as a "second income" of which I would be liable to taxes. So if I was in the situation above and paying taxes on my parked earnings, technically my main job could claim I had a second job, which would be true "technically".
The problem begins when you start earning income from your initial "investment" into a domain registration. The domain is an investment, the parked advertising is "income", which he may have declared to the tax office, correct?..
BINGO....he just came up with your argument. Don't use virtual real estate it's not easy to compare. Use Stocks and Bonds which are intangible items that accrue value and can even pay dividends. Use an analogy of dividends with the parking revenue. You do ZERO work and if the domain does well for ANOTHER company (sedo) then you get a percentage. You are holding the domains as a long-term investment NOT as a job.
Has a point, good grounds to argue....now we need evidence to backup the point......