Website builder » Other – Taxes http://websitebuilder.simplyemailmarketing.com Simple web site builders for your own website Thu, 30 Sep 2010 22:15:06 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 Website Development Costs Expense vs Depreciation? http://websitebuilder.simplyemailmarketing.com/2009/11/website-development-costs-expense-vs-depreciation/ http://websitebuilder.simplyemailmarketing.com/2009/11/website-development-costs-expense-vs-depreciation/#comments Sun, 01 Nov 2009 09:46:00 +0000 admin http://websitebuilder.simplyemailmarketing.com/2009/11/website-development-costs-expense-vs-depreciation/ Website builder

Website Development Costs Expense vs Depreciation?

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Can we expense Website Development Costs or does it have to be depreciated? I researched and it doesn’t seem as the IRS have issued any rulings over this issue. Some are expensing it, some are depreciating over 3 years (software costs), others under 5 years and then others over 15 years based on intangibles. I do not really need the deduction until later years. We incurred these expenses before we started operations. The website is e-commerce. Any IRS reading about this?

Thank you
v b, that’s not consistent with IRS.
“Sec. 195 generally provides that no deduction is allowed for start-up expenditures unless a taxpayer elects to amortize them over a period of not less than 60 months, beginning with the month in which the active trade or business begins” and an election can be made to deduct up to $5,000 in the tax year which operations begin.

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Website Development Costs Expense vs Depreciation?

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