For many people, the year 2018 has been a good financial year. As we are now in the fourth quarter, I wanted to take a few moments to share some pro tips for using your domain holdings to manage your year-end tax liability.
One of the most popular moves for reducing your 2018 tax liability is our Forever domain registration. This is a one-time purchase of a forever domain. This service is uniquely offered through Epik and can be done with most domains. The Forever domain allows you to recognize a 2018 expense to cover the registration costs for as long as you hold the domain at Epik. To check if your domains are eligible for Forever registration, visit here. In addition to Forever domains, Epik also offers Forever web and email hosting plans.
Year-end domain selling
One of the unique features of Epik is that we are not only a registrar but also a domain name marketplace for selling and leasing domains. When you sell domains on Epik, your proceeds are initially deposited tax-free in a Masterbucks account. These proceeds can be held or spent tax-free. If you are redeeming your proceeds, that is generally considered a taxable event and possibly best timed for after the new year. If you are new to selling and leasing domains, read our helpful how-to guide here. For transactions larger than $10,000 use our escrow service.
Fund your account for planned 2019 purchases
You may also fund your Epik account through your preferred payment method before December 31, 2018. Your deposited funds are held in the form of Epik In-store Account Credit which can be used for future domain and hosting related expenses regardless of whether you choose to process the renewals at this time or after the new year. You can fund your account online from your account by logging in and adding funds here.
Domain Gifting and Estate Planning
If you hold domain names that have appreciated in value, you may gift domain names to qualifying institutions such as 501(c)(3) non-profit organizations. To do this, you will want a 3rd party appraisal of the domain names being gifted, particularly if the size of the gift is more than $5,000. If you have a domain portfolio that would logically benefit a qualifying institution, that institution can in turn use or sell those domains. For a professional appraisal, visit our appraisal page here.
For anyone holding cryptocurrencies such as Bitcoin and Ethereum, Epik does offer the option of funding your Epik account using these cryptocurrencies in addition to bank deposit, wire transfer, ACH, and PayPal. If you wish to fund your account via cryptocurrency, please contact us and we’ll assist you with this task. Your cryptocurrency payment can be held in the form of Epik in-store credit for use with future domain and hosting purchases.
Bulk Domain Transfers
I hope these pro tips are helpful for you. Consult your tax advisor or contact us for a free consultation on year-end tax strategies for domain holders. Feel free to share these tips with others. For now, I wish you a blessed year-end holiday season and look forward to another year ahead of industry-leading innovation and legendary support. Thank you for your continued feedback. If you loved Epik in 2018, feel free to let us know here or by liking us on Facebook.