Can you write off domain name?

Domain names are generally regarded as intangible personal property. The nominal annual domain name registration fees are generally deductible. You must generally amortize over 15 years the capitalized costs of “section 197 intangibles” you acquired after August 10, 1993.

What expense category is domain registration?

The IRS looks at domain name costs in two ways: capital costs and ongoing, recurring business expenses. General registration, added domain name protection services and recurring maintenance costs for a domain name are all considered regular business expenses.

Are domain renewals taxable?

Decide Whether It’s an Asset or an Expense The Internal Revenue Service treats assets differently from expenses, and which category your domain name falls into will affect your tax situation. That said, even if your primary domain is considered an asset, the hosting and renewal fees can still be deducted as expenses.

Are domain names taxed?

Clearly, the IRS takes the position that a domain name is an intangible asset in which the costs must be capitalized under Sec. 263 and not deducted currently under Sec. 162.

How long do you amortize a domain name?

Acquired Domain Name Costs Are Amortized Over 15 Year Life Per Chief Counsel Advice. The IRS National Office determined that the proper life for amortization of an acquired domain name is 15 years in Chief Counsel Advice 201543014.

How do you depreciate a domain name?

Because a domain name is not a physical asset, it never needs to be depreciated. However, certain domain names are considered intangible assets. These domain names need to be amortized or periodically written down to fair market value.

How are domain names taxed?

Essentially, the IRS determined that the costs of acquiring domain names are to be capitalized under Sec. 263 as intangible assets and that those costs should be amortized under Sec. 197 over a 15-year period. In the CCA, a company acquired internet domain names on two separate occasions.

Is selling a domain name a capital gain?

When you sell your domain, the gain will be determined by how you treat these assets. If you treat your domains as 197 intangibles, and thus had ordinary deductions through amortization, your gain will be ordinary. If you treated them as capital assets, your gain will be a capital gain.

Are domain names intangible assets?

The domain name is an integral intangible asset.

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