12/16/2015 Joe Jensen

Did You Know Web Design is Tax Deductible?

If you didn’t, that headline probably gave it away. But, we are hoping you’ll give us a few minutes of your time anyway, because there are few important aspects of business web design, taxes, and financial reporting you should be aware of.

For sense of why, and what makes it so important, let’s dig into a few different details…


Web Design and Internet Marketing Are Usually Classified as Advertising Expenses

You’ll want to speak to your acct. for personalized advice, of course, but most companies write off web design and online marketing expenses under the broad category of “advertising.” The IRS knows you need a website to find customers, so there aren’t any issues claiming these costs on your schedule C or (for corporations) Form 1120.


Why You Can Write Off Web Design Expenses

For the skeptics out there, the rationale for expensing things like web design, Internet advertising, and content creation is simple: these are investments you make in your business to find new customers. Additionally, a great website can help you attract new talent, stay on top of customer service, and even sell products directly.

These are all straightforward business activities. Expensing web design and online marketing work isn’t a “gray area” or “loophole” that’s going to get you in trouble with your taxes, so long as you keep good records that include copies of the invoices your creative team send you.


Great Web Design Isn’t Just an Expense, It’s an Investment

As a business owner or executive, there are a lot of things that you can spend money on that will leave you wishing you had just held onto the cash. Great web design is very unlikely to fall into that category.

With the right website, you can find new buyers, boost your revenue, lower business expenses, and open up an entire new markets. So, not only will the money you spend on a better web presence lower your tax bill, it might just help you boost revenue and profitability at the same time.


We are on a mission to make sure every client knows web design isn’t just tax-deductible, but a smart investment in your bottom line. Why not call or email our team today to schedule a free consultation and see what we can do for your business?

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