In general, Website Design & Development costs can be deducted in the year of purchase. Depending on how you structure your business and your tax bracket, the Investment involved in designing a website can provide a tax deduction of up to 40% of your costs.
If your tax bracket is 30% and you invest $500 on a website then you save $150 in taxes so your real out of pocket cost is $350 for the website work. When you consider the costs and the added benefit of improving your online presence, the Investment should pay for itself with new clients.
What else can you deduct?
- Domain Names
- Website Hosting Fees
- Content Creation Fees
- Monthly Fees for items like IDX for Realtors Note: use the link to save $99 off the setup fee.
- Search Engine Optimization Costs
- Stock Pictures that you purchase
- Pay Per Click Campaigns
- Etc
Just remember that if you use your website for business purposes, then it is tax deductible. Don’t forget to consult a Tax Professional to get a better understanding of this topic as every business is different based on location, industry etc.
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