Domain Name Registration Tax Deduction

By the masked cpa.

Domain name registration tax deduction. Capital costs and ongoing recurring business expenses. Personal tax returns looming there are two important issues you must make your tax professional aware of before he or she prepares your return. However the domain name is not a capital asset if held by someone who is in the business of buying and selling domain names panavision int l v.

Central to the debate was whether they should be considered assets or. If you buy domains with the intent to sell them later they could be treated as inventory and expensed as cost of goods sold. The schedule c isn t really that complicated especially if you use a tax prep program like turbotax or taxcut.

The irs looks at domain name costs in two ways. Toeppen 141 f 3d 1316 9th cir. Jenna can claim a deduction for.

If a nongeneric domain name meets the definition of a trademark in regs. General registration added domain name protection services and recurring maintenance costs for a domain name are all considered regular business expenses. These are deductible from income a business may earn in the same tax year.

With the april 15 deadline for u s. Further web hosting is an independent process of allocating space on a server to store all website files and make the website accessible through the world wide web. Joe operates a suburban plumbing service.

In june 2019 jenna buys a 2 000 website hosting package for her small business. For most freelance businesses deducting website expenses or deducting domain name registration fees happens on the schedule c. He arranges to have a website constructed with the following features.