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  1. #1
    SitePoint Enthusiast USFKclassifieds's Avatar
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    Accounting for the purchase of a website?

    How do you account for the purchase of a website? I have heard two different ways; either as a capital expense that you can deduct right away or an asset that you can only deduct from the profit after you resell it. Anyone know the answer? Have a document that states this?

  2. #2
    Life is short. Be happy today! silver trophybronze trophy Sagewing's Avatar
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    There are several ways to do it under US tax law, and the 'best' way is usually to figure out which way of categorizing the expense will provide you with the lowest tax liability overall (i.e. both short and long term). It will be hard for anyone to give you a clear answer on this without understanding what your tax situation looks like, what entity you are operating as, etc.

  3. #3
    SitePoint Enthusiast USFKclassifieds's Avatar
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    I would prefer to take the full deduction NOW vice down the road. Per the Tax laws I can take up to $125,000 of capital expense in a single year. Last year I bought two websites; one for $30,000 and another for $2,000. I would like to use the entire $32,000 now as a capital expense. Can I? I can't seem to find a legal tax code/presidence for websites as a capital expense.


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