Can website development cost be capitalized?
Website development is a crucial investment for businesses today. Whether it’s a startup launching its first website or a large corporation revamping its online presence, the costs can be significant. A common question arises: Can website development costs be capitalized? Understanding how to categorize these expenses correctly affects a company’s financial statements and tax liabilities. Let’s dive into the details of capitalizing website development costs and when expensing them makes more sense.