Can you recommend good accountant with knowledge of domains?

Last one I've met charged me $400 for 1.5 hours which I've spent explaining what is domain and how come I'm buying and selling something which she can't see and touch.

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I think you need an Accountant who has clients who are in IT, Business related to IT, ecommerce ect ect.

I think it would be very hard to find and accountant who just knows "domains"...

But $400 for 1.5 hours if they don't know IT is a rip lol..

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I think that kind of rate is pretty typical for an accountant.

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Yes that's not an unreasonable hourly charge for a decent accountant. Although it doers suck to have to spend it to bring the accountant up to speed! PM me for details of my accountants who do have their heads around the whole thing!

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What is it you are trying to work out with your accountant regarding domains pacifier?

I had done a bit of research into how any dropped domains worked out for my company and it seemed that they are classed as asset purchases (both the bid price and the initial registration fee). What it meant was that I couldn't consider the carparts.com.au purchase as an expense to drop my profit and minimise tax.

Yeah but as a result of this is the asset then considered working capital?

If this is the case are you planning to argue that the if you were to sell the "asset" and yield a capital gain, but have held the asset for over a year that you are eligible for a 50% reduction in tax payable on the capital gain?

If it is held in a straight company that couldn't be claimed, would need to be in a personal name or trust structure.

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That's where the grey area is. I could agree that the bid price could be classified as asset, but why the registration fee. You are paying this fee for the right to use/rent the domain for 2 years. If you pay rent for office would you classify it as asset? What is gonna happen when you pay next registration fee for this domain. Would you add this to the asset value of the domain and would you do that for all of your domains so you can work out the asset value when you sell it? The other question is if you classify it as asset would you depreciate it?

I had the tax man coming to my office and according to him you buy domain you record it as expense, you sell the domain you record it as income. Seems that nobody knows for sure. There are no tax rulings which clarify the matter.

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Registration fees would generally be written off over their life, ie 2 years registration fee written off over 2 years for .com.au.

An aftermarket purchase is very different though because there is some definite value there. Would say it needs to be written off over its useful life (if an argument can be made that it has a shelf life) or not written off at all.

If you want to get a good feel for it I would be looking at Darkbluesea's old accounts, they've already paid the accountants to look at it in depth.

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pacifier, the reason that the registration fee on dropped domains is considered to be a part of the asset value is because it is a required expense to acquire the asset. Future registrations are all classed as expenses as they are required to maintain the asset. The same thing would happen if you were to buy a property, the asset value on your books would be the property price + stamp duty/etc (all costs in acquiring the asset).

Here is the ITAA page about Cost Base, even I find things like this hard to make sense of, http://www.austlii.edu.au/au/legis/c...0/s110.25.html, most accountants wouldn't have a clue regarding domains unless they were domainers themselves.