Website Cost

[Jiggers]

Do you just expense the cost of setting up a website? Or, is it depreciated, and for what length of time?

[Black Bart]

Geekgirldany does that

as a sideline. I don't know, but I'll bet she would. Haven't heard much from her lately though. Hopefully, she's surfing the board on occasion.

P.S. If she doesn't reply soon, maybe send her a PM (she told me about that terminology -- it means send her a "Private Message" and not...something else). I'll bet that in her website business she gets and reads lots of important emails (unlike me -- the Lord of Spam City).

[sea-tax]

I did a quick google search of "deducting websites " it gave some useful info.

Also in the US Master tax Guide it says and I quote
" The IRS has not issued formal guidence on the treatment of website development costs. However informal internal IRS guidence suggests that one appropriate approach is to treat the costs like an item of software and depreciate them over 3 years."

It also says that many taxpayers take a deduction under Code section 174 or as advertising expense.

I personally would depreciate over 3 years , but what do I know.

[KJ Judd]

When I looked a couple years ago, I found what sea-tax referenced. I discussed with my clients & we decided to capitalize. I don't remember if we then elected Sec. 179. I believe that would be a way to get to the same result.