Discussion:How to handle expense of e-commerce store & web setup
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Discussion Forum Index --> Tax Questions --> How to handle expense of e-commerce store & web setup
Gmacdon167 (talk|edits) said: | 6 February 2007 |
| Can anyone provide guidance as to how to expense the purchase of licenses, website design, merchant accounts and domain registrastions for an internet store? The purchase was bundled and priced as one item. My client has paid for these services in 2006 but had no revenues in 2006. Is this a 15 year start-up cost, or a 3 year amortization (like software)? What code section does this fall under? I have an article referencing code Sec. 167(f) but can't seem to find anything to back this up.
Any input is greatly appreciated. Thanks! | |
Bottom Line (talk|edits) said: | 7 February 2007 |
| How much money are we talking? | |
Gmacdon167 (talk|edits) said: | 7 February 2007 |
| $5800 plus some add-ons to the tune of another $2K | |
Bottom Line (talk|edits) said: | 8 February 2007 |
| OK - so looks like $7,800. IRS would normally expect anything over $5,000 to be called "start-up" and amortized over 15 years. Since NO revenues in 2006, I don't see how you can call it anything other than start-up. Others may have some thoughts though | |
| February 8, 2007 | |
| See Sec. 195 and Sec 195 Start Up Expenditures. You should be able to amortize the costs over 60 months, I think. | |
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