Intangible asset

Why it matters

A business that buys a domain may need to treat the cost as an asset instead of a one-time expense. The IRS says section 197 intangibles are generally amortized over 15 years. Whether a particular domain falls in that group depends on the facts. Sellers may owe tax on gains. Treatment can differ for investors, traders and businesses. Ask a tax professional before the deal. A common mistake is assuming the full price is deductible in year one.

Source: irs.gov