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  1. Question 1: Whether you deducted the...

    Question 1: Whether you deducted the registration/hosting/R&D expenses has little or no effect on whether the gain is from the sale of a capital asset. If you sell the site without ever having...
  2. The answer to whether the profit you make from...

    The answer to whether the profit you make from selling a website is ordinary income or capital gain depends on the facts. From what you described, your gain is probably capital gain (whether it is...
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