This won't be of concern to me for some time to come (if ever). I only got into domaining around 18 months ago, and in that time have bought a lot of domains to get myself started and only sold a handful so far ... so I won't be into profit any time soon! That said, I am curious to know whether domain profits are taxed as income or capital gains? I suppose a lot depends on the circumstances. In my case, I probably spend an hour or two on this most days (although there have been periods when it's been much more), and they are all bought with the intention of selling (most of them being posted on a for-sale landing page very soon after being purchased, except for a handful where I suspect they will be worth more if I wait). I don't know whether the number of domains is relevant (i.e. make it look more like a business), but if so I have nearly a thousand at the moment and for the foreseeable future will probably be maintaining it at around that level. Sorry to trouble the good people on here with a boring tax question, but I did google it first and just ended up very confused!