Website purchase and taxation

Discussion in 'General Business' started by leroybrown, Jul 17, 2007.

0
  1. #1
    Hello,

    I operate an LLC, and own several websites. However, I made my first purchase of an existing website this year. Can I deduct the amount I paid for the site from my earnings? Or is it handling differently?

    Sorry if it's a silly question, but it's the first time I purchased a site, and don't want to draw any additional IRS flags by making an inaccurate deduction.

    Thanks in advance

    LB
     
    leroybrown, Jul 17, 2007 IP
  2. Yankee0306

    Yankee0306 Peon

    Messages:
    594
    Likes Received:
    6
    Best Answers:
    0
    Trophy Points:
    0
    #2
    Essentially you bought software. If the cost was under $3,000 I would expense it. If it was more I would capitalize it. However there is a strong arguement for treating the purchase as a marketing expense.
     
    Yankee0306, Jul 17, 2007 IP
  3. GeorgeB.

    GeorgeB. Notable Member

    Messages:
    5,695
    Likes Received:
    288
    Best Answers:
    0
    Trophy Points:
    280
    #3
    Talk to your tax attorney or CPA. Their advice will be specific to LLC's specific state/county.
     
    GeorgeB., Jul 17, 2007 IP
  4. marketjunction

    marketjunction Well-Known Member

    Messages:
    3,779
    Likes Received:
    187
    Best Answers:
    0
    Trophy Points:
    183
    #4
    Agreed.

    Don't ask for or listen to tax advice from people on a forum, unless it's a tax pro forum. :)

    The IRS isn't something to play around with. And you don't want to be an amateur when it comes to your taxes.
     
    marketjunction, Jul 17, 2007 IP
  5. leroybrown

    leroybrown Peon

    Messages:
    62
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #5
    You're right, of course. I just don't have a CPA / tax attorney yet, and the cost would seem to be prohibitive for me this early on. Trying to get advice on the cheap even when I know I shouldn't.
     
    leroybrown, Jul 23, 2007 IP
  6. MTbiker

    MTbiker Well-Known Member

    Messages:
    2,536
    Likes Received:
    123
    Best Answers:
    0
    Trophy Points:
    170
    #6
    I've learned this the hard way - get a lawyer and accountant and more on board before you even start the business!! It will save you money in the end.
     
    MTbiker, Jul 24, 2007 IP