Morning Folks!!
If you look to the center right in the picture below you will see a parking lot. Pay Per Park or Pay er Click. SAME THING! I took the photo earlier this week from my Room at the Ritz.
The lot has been there for decades. Maybe it was something else at one time. Maybe it was once developed. Maybe not. Fort Lauderdale is 101 years old. He pays hs taxes and he has a nice lot a block away from the ocean. That's all we do. And once in a while somebody may come along with a larger and grander plan. Maybe a hotel. Maybe a skyscraper. It's been the way of the world for a very long time. The perfect parallel. Don't ever second guess it!
Rick Schwartz
UFO
The issue with domains is that its never been properly decided what class of ‘property’ they really are.
If they are treated as real property then yes, the same rights responsibilities and profit is the same, as per your example. However, if they are treated like trademarks and intellectual property then they have those rights and responsibilities. The two are most definitely different in some areas and those domain holders losing their domains should ensure they know how to keep on the right side of the ‘rules’ because domains are only leases with a presumptive right of renewal.
UFO
Here’s a take on the new .whatevers straight from the horses mouth.
“More important than owning all the dot-whatevers that go with your name is to take what you have, brand it really well and make sure you cross reference it and integrate it throughout all of your efforts,” including brochures, advertising and the like, Garvey said.
http://archives.starbulletin.com/2008/07/27/business/engle.html
M.G.
If domain-like rules apply for real-estate, Ritz may claim bad faith of parking lots owner and take it for $1,500.
Fat City Properties (@iFatCity)
Great analogy Rick. Here’s some more info for your readers on how the US government and specifically the IRS classifies domain names:
4.43.1.10.6.11 (07-23-2009)
Internet Domain Names
1. Domain names are generally regarded as intangible personal property. The nominal annual domain name registration fees are generally deductible.
2. However, if a retailer acquires a domain name, then capitalization should be considered under Treas. Reg. 1.263(a)-4(b). The retailer is paying for a property interest that meets the definition of a purchased intangible.
3. Some retailers may acquire multiple domain names at premiums to protect the reputation of their business which may be considered for capitalization.
M.G.
@Fat City Properties — Less clear is how IRS classifies profit from selling domain name, if as regular income or capital gain. IRS actually will not answer you this question, even if you ask them directly. Crazy! Even more complicated would be lease-to-sell option.
insane-in-the-membrane
you mean like this ? RPLH (Reverse Parking Lot Hi-jacking)
http://www.foxnews.com/us/2013/10/25/seattle-seizes-elderly-woman-parking-lot-to-turn-it-into-parking-lot/