How to handle the taxes on your website development costs

To help you gain clarity on the tax treatment of website building expenses, Chartered Professional Accountants of Canada (CPA Canada) is providing you with easy access to a key resource on this subject from BDO Canada.

When it comes to your clients’ websites, how much do you know about how to handle the taxes on their web development costs? In Canada, no rules govern how to deduct such expenses, but Canada Revenue Agency has provided some guidance on the subject, and it’s explained in this BDO Canada article, “Tax treatment of website development costs.”  Published in the January 2014 edition of the firm’s newsletter, The Tax Factor, the article will help you distinguish between web building expenses that are currently deductible, and those that may have to be capitalized and written off under Canada’s tax depreciation rules.