Sale of domain and business assets
June 4, 2011 | 40,00 EUR | answered by COUNSELOR Ralph J. Schnaars
I was offered a five-figure euro amount for the rights to one of my domains in the middle or upper range. As a self-employed small business owner in the field of internet marketing and handicrafts, a one-time payment like this would not have a very positive impact on taxes. Now that I am already 60 years old, I am thinking about selling my business. In such a process, I could take advantage of the tax exemption for seniors. Is this only possible due to the sale of the domain rights? With a new domain, I would have to start over with establishing my website. After the sale, I would deregister with the tax office. Do you see any other options?
Dear inquirer,
The sale of the domain is generally fully taxable (possibly even subject to 19% VAT in your case).
The cessation or sale of a business requires the complete abandonment or sale of the entire company. The question then arises whether the interested party also wishes to acquire other parts of the business. If not, it is not considered a business sale (for tax purposes) and therefore not eligible for tax benefits.
It is also not straightforward for income tax purposes, as a tax-advantaged cessation of the business (using the exemption) is only safe and feasible if you do not engage in the same segment later on.
Furthermore, it is not completely clear (at least for me at this moment) whether further tax issues could arise or if the tax implications of using the exemption are really as determined from the outset.
Consider, for example, potential questions of hobbyism from the tax office, which could even target older tax years. Or even the question of whether there may have been a taxable trader.
Ultimately, I see another possibility.
However, this requires a more thorough understanding of the underlying facts and possibly a personal conversation.
Please contact me for a solution.
Ralph J. Schnaars
COUNSELOR Steuerberatungsgesellschaft mbH
Schubertring 3A, 22848 Norderstedt
Phone: 040 534 34 90
But rest assured, we will solve the problem.
Yours sincerely,
Ralph J. Schnaars
