domain transfer question

[diecipher]

I sold a couple domains and websites and the new owner is requesting I
send all my personal information, including #ssn so he can send me a 1099
and write off the purchase on his taxes.

I am not to comfortable sending my #ssn and I have never had any other
requests like this before.

Technically, am I legally required to give him this information?

Any help would be appreciated.

Thanks

 

[jdk]

First off, welcome to DnForum.

Have you already completed the transaction with him? You are not legally required to submit this information to him, but are legally required to claim it on your income taxes for any profit you made.

 

[diecipher]

First off, welcome to DnForum.

Thanks

Have you already completed the transaction with him? You are not legally required to submit this information to him, but are legally required to claim it on your income taxes for any profit you made.

Not yet, but he says as soon as I receive payment he needs the info. I guess
I am not familiar with what I am REALLY obligated to provide him for tax purposes. Would he need my contact information but not my #ssn? I was under the impression that a 1099 is issued to freelancers/non-employees for services, etc. - not a sale between two parties?

 

[jdk]

Usually for higher priced names buyers tend to request that information. If you are going to get in the business of selling domains/services you may want to invest in an EIN - Employer Identification Number. You will use this in place of your ssn#

 

[Nova]

Usually for higher priced names buyers tend to request that information.

This is the first I've heard of such a thing. I'm glad jdk has pointed out that diecipher is not legally obligated.

Diecipher has received a request which is about as big a red flag as it gets. This is not payment to an employee or contractor, but the purchase of a domain. The request should of course be denied, and it may be best to cut off communication with the supposed "buyer" depending on the state of any actual transaction in progress.

 

[diecipher]

Thanks for the info, I have to look at this closer for sure...

What information is he required to submit with his taxes (to write off the purchase) regarding the domain/webste purchase? Would he just need my name? I want to know what I am talking about when he says "he needs it for taxes". I would like to say, "no,all that you need from me legally for you taxes is XXXX".

 

[DNQuest.com]

NO NO NO, a 1099 is for contractors... you are selling the domain. Huge difference. Do not give him that information.

 

[jdk]

NO NO NO, a 1099 is for contractors... you are selling the domain. Huge difference. Do not give him that information.

Thanks DNQuest! :wink_smile:

 

[diecipher]

NO NO NO, a 1099 is for contractors... you are selling the domain. Huge difference. Do not give him that information.

Thanks, but I am still confused. Should I even give him my name and p.o. box? How's he going to report it to the IRS and write it off if he has no information regarding the sale? Won't they require some information?

 

[DNQuest.com]

Thanks, but I am still confused. Should I even give him my name and p.o. box? How's he going to report it to the IRS and write it off if he has no information regarding the sale? Won't they require some information?

Frist question is..."why do you care?". Taxes are his problem, not yours. If he needs something in writing, jsut write a simple email stating a [domain name} is being sold to {buyer} from {seller} in the amount of {sale amount}. The buyer can use this as proof of purchase.

I have made many transactions buying/selling domain which I have no idea who the other party is. I honestly claim them in my business. If I am asked, I have documentation form Paypal, or a check written to me (or one I wrote) to verify the transaction.