Anybody know if you can write off an entire website purchase or if you have to amortize it over a 15 year period?
Writing off Website?
- Thread starter DollasnCents
- Start date
I am sure it depends on many different factors that only your accountant could really handle. Some of the questions I would have is this website the main focus of your business, meaning did you start the business because of the site? If not, how have you treated past purchases? If I remember right, you have to amortize things the same way for everything, you can't just pick and choose unless you make a structure change in your accounting practices.
Like I said, it really all depends on how you run your business and how you have treated past assets when you acquired them. Hope that made a little sense to you.
Like I said, it really all depends on how you run your business and how you have treated past assets when you acquired them. Hope that made a little sense to you.
It's an intangible asset. I highly doubt you can write it off in a year, or even amortize it over a fixed number of years. How would you justify its useful period? I'd imagine all you can do with a website acquisition is test for impairment. If a website sells for 10x monthly income, and the average monthly income has dropped the next year -- you can probably record a loss based on the 10x monthly valuation.
Talk to your accountant.
Talk to your accountant.
Yeah talked to my accountant waiting for him to get back, wanted to see if any one had some good insight. The advertising cost seems a bit shady but the best way to go.