Website sale - what is it taxed as and how will it affect my income?
Hi. I recently sold a website that was running as an income generating asset under my LLC. The site was opened in March making it only 9 months old. However, I started coding the site a few months before the launch.
I read that in order to be taxed as a long term capital gain, I would need to have held the asset for 1 year. But, my LLC that this was shelled under is over 6 years old. However, I didn't sell my entire LLC. It seems like a big mess and obviously I would rather pay capital gains on this instead of putting it as income which would bump me up two entire tax brackets.
Thanks for any help you can provide and feel free to ask any questions
Posted Nov 23, 2016, 1:51 AM UTC
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Best advice is to talk to a CPA. I can explain it but I charge $350+ hourly so I'm going to look at memes instead. Find a local CPA to do it for you. Also don't act like you know what you're talking about because you don't. Its similar to me whenever I get my oil changed. I tell the mechanic that I changed a radiator in HS auto shop because I don't want him to think I'm an idiot. But in reality he doesn't give a fuck and I actually am an idiot with cars. Thats how you are right now. Pay to have your oil changed and pick it up when the mechanic is done. Don't tell the mechanic what you think is happening. You don't know what is happening and you should probably actually get your oil changed IRL because I need to now that I think about it.
I didn't mean to come off as knowing anything. I was just providing all the details for you guys so I could get some input. I'm sorry if it seemed like I did.
I was just being funny at your expense, and I apologize for that. Your comment about moving up tax brackets is a solid tell that you don't understand taxation though, and that's okay. I'd rather know websites than taxes, too. Tax brackets are applied to incremental income. So while some of your income may be taxed at 35%, not all of it will be
Oh.. is it really? Well that's a sigh of relief... Yeah I am pretty stupid on all of this but that's why I will leave it up to you guys and stay in my nerd field 8)
Cheer and thanks for all the help man!
+1. Best answer i have ever seen on Reddit. Now back to those memes.
That's a hard fucking dose of real-life.
I think I'm going to print that on a shirt or something :)