The US IRS generally requires the cost of domain names, trademarks and socials over $5000 USD to be capitalized as an intangible asset under Section 263.
The price paid is then generally amortized (spread out) over a 15-year period under Section 197.
3 Potential Buyer Benefits of Paying by Installments
- Installments allow you the option of rights at an earlier point in time versus waiting until you are able to pay the upfront price.
- Installments preserve cash flow by avoiding one large upfront payment, providing financial flexibility to invest in other growth opportunities or operational needs.
- Installments may reduce long-term financial risk by allowing flexibility to exit or change domain name agreements without the full investment commitment.
3 Potential Seller Benefits of Offering Installments
- Steady and predictable income stream from payments, which provides financial flexibility and ongoing revenue.
- Potential tax advantages by spreading revenue over time rather than receiving a lump sum, depending on tax classification and consultation with an accountant.
- Opportunity to realize a higher total sale price if structured with an installment agreement.
Updated February 3, 2026
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