Hey guys, (yes another tax question)
I realize this is something a CPA should be able to help with, but the person I've been using is more of a straight forward CPA, and his knowledge of how Domains & Websites are taxed is limited. I'm finding someone that's more capable, but until then...
How are domain purchases taxed? e.g. If you buy a domain for $1,000 are you able to expense it all the first year or do you have to amortize it over several years? Or can you expense it all the first year then pay taxes based on the value of it the following year (since its an asset).
Now as far as websites go, say you start developing a site and you pay a programmer $1,000.... are you able to write that all off as an expense or does the resulting "site" have some value that's still taxable?
Thanks.
I realize this is something a CPA should be able to help with, but the person I've been using is more of a straight forward CPA, and his knowledge of how Domains & Websites are taxed is limited. I'm finding someone that's more capable, but until then...
How are domain purchases taxed? e.g. If you buy a domain for $1,000 are you able to expense it all the first year or do you have to amortize it over several years? Or can you expense it all the first year then pay taxes based on the value of it the following year (since its an asset).
Now as far as websites go, say you start developing a site and you pay a programmer $1,000.... are you able to write that all off as an expense or does the resulting "site" have some value that's still taxable?
Thanks.
