Website costs

[JON]

Client just in business the first year paid $6,100 for a website to be able to take orders and advertising. No charges for hosting or anything else - just set up - expense, depreciate, amortize, what to do?? The site was created after sales had started.

[ATSMAN]

Client just in business the first year paid $6,100 for a website to be able to take orders and advertising. No charges for hosting or anything else - just set up - expense, depreciate, amortize, what to do?? The site was created after sales had started.

Can't do Sec 179 because it is not off the shelf software available to general public so you have to amortize it over 3 or 5 years. Most likely 5 years.

[taxea]

5000. is startup costs the balance is expenses.

[JON]

There is actually something called the Internet Law Resource Center. They seem to say that to the extent you have advertising involverd expense it. There was also a court case to establish that. Other than that the arguements start - software intangible - startup if before opening. The Resource also get buried in nexus and sales tax issues.

[taxea]

If the website is being used as a marketing tool then the balance over 5K can be expensed. If it is also being used for billing purposes then the expense needs to be allocated between advertising and accounting.