I have a client who is spending several thousand dollars on a website. Upfront this is low 5 figures. I am wondering if this should be classified as an asset or if it should be immediately expensed to advertising/promotions or professional fees of some sort. Thanks! The maintenance on it is a few thousand dollars every year afterwards, so I know that will be immediately expensed.
Here’s a link to an article by BDO (from 2014). They seem to recommend that the labour to construct the site be capitalized. However, ongoing maintenance would be deductible. Any software or hardware acquired as part of the development would be capitalized.
Thanks! That tells me how some of it is capitalized, some expensed immediately.