Can I claim a website purchase as an expense?

I have a company that makes profits through Amazon sales.
If I bought web sites will I be able to claim them as an expense.
I would like to write everything off for the year so I don't pay any tax.

Any advice greatly appreciated!

Cheers!

 

I don't know for sure...my accountant told me my advertising expenses were 100% deductible. As for purchases, you might be able to say they are advertising for your other sites, but I'd check with someone who knew.

 

From what I see, a website purchase is not something you 'consume' and it should be seen as an investment (an asset) instead of an expense.

 

It's an asset purchase, not a business deduction - unless you sell it at a loss, or abandon it.

 

If your accountant will agree that it is a "startup" cost the first 5K can be written off the first year and the balance over time. 5 or 15 years. I would have to look it up to be sure.

Otherwise you will have to amortize the cost over the same amount of time.

 

just give the website you purchased in the double declining depreciation with the lifetime of 1 year. this way you make it as an expense the depreciation of your asset(site). if you're not sure, ask your accountant.

 

I would strongly suggest seeing a CPA for advise on a specific purchase. There are things that you can do on your taxes, and things that the IRS allows and doesn't (creative accounting). I think your CPA will see it as a section 1231 asset, and there are specific rules that must be followed to write off significant dollar amounts (like an independent appraisal).

 

I would say you can not if the cost would be more then $500

 

I will definitely consult a CPA I was just curious if anyone else has done any of that. It kinda sucks when the income is cut in half and you are trying to grow your business.

So what if down the road I abandoned that site and I was negative for the year would I get money back? lol

 

You can straight line expense equipment purchases to reduce your net income - but other than setting up a retirement - it's too late to do anything for the year that just ended.

 

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source of second quote; http://www.irs.gov/publications/p535/ch01.html#d0e402

Follow that link and read more than you ever wanted to know.

 

You can certainly deduct your expenses. The only question is how to deduct. For annual registration fees that you pay ($10-30) to register.com godaddy.com, netsol.com and the like, you can deduct it as a business expense every year (let's say you have 100 sites at $10 = $1000 deduction against earnings). If you bought a website business (traffic, design, etc) let's say for $5,000 or for $500, then you would have to depreciate your investment, usually over time but you might be able to do appreciated depreciation -- you would have to review this with an accountant. Software such as Turbotax for business guide you through all of this pretty smoothly as well if you have some understanding of taxation.