Domain purchase and tax

[retired_member11]

Does anyone know if a company can offset the purchase price of a domain against their tax liabilities? If they can is it at 100%, or some lesser %?

Thx.

 

[lesurf]

I have done in the past, my accountant said put it down as "advertising".

 

[retired_member11]

Advertising? OK, so at 100 % of the purchase price ?

 

[bb99]

For Companies: If the domain has been written off in the P&L then yes you can treat it as any other normal business expense.

If you've capitalised it on the balance sheet then things get complicated. But it sounds like you've not done that so I won't get into it :razz:

As ever, this is not professional advice, always ask your accountant who has professional indemnity insurance and who you can sue if they give you duff information...

 

[retired_member11]

Thanks for that.

I was trying to find out so that I can use it as a buying plus point to a prospective buyer of one of my names. They don't want to pay my price so I have to sweet talk them with 'positives'.

 

[olebean]

Just a small note to add to Charlies....... If you pay large sums for a domain you will be luck to get away with writting it off as advertising