Can I Write This Off?

Can I write off website design costs?

TL;DR

Yes, website design costs can be deductible as a business expense.

Detailed Answer

Website design costs are generally considered a capital expense, but they can be deducted as a business expense if the website is used for business purposes. If the website is developed in-house, the costs can be deducted as ordinary business expenses. However, if the website is purchased or developed by a third party, the costs may need to be amortized over a period of time. For example, if you pay a web designer to create a website for your business, you can deduct these costs as a business expense.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 27a for sole proprietors or as a business expense on the relevant business tax form.

Real World Example

A freelance graphic designer pays $3,000 to a web development company to create a portfolio website. This cost is deducted as a business expense on her Schedule C.

Calculation Required

A calculation is required for this deduction.

If the website costs are capitalized, they may need to be amortized over 3 years. For example, a $3,000 website design cost would be amortized at $1,000 per year.

Audit Risk & Documentation Tips

Keep detailed invoices and contracts from web designers or developers. Document the business purpose of the website and any related expenses. Maintain records of any in-house development costs, such as employee time and materials.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

Small BusinessFreelancersE-commerceMarketing Agencies

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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