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#7
08-11-2005, 01:33 AM
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 Re: How to expense 10-year domain registration? David Woods <davidwoods[at]verizon.net> wrote: - quote - > "Victor Roberts" <xxx[at]lighting-research.com> wrote:
I had forgotten that. Specifically, if I register a domain> > rlcarr[at]animato.arlington.ma.us (Rich Carreiro) wrote: > > > What is the proper way of expensing a 10-year internet > > > domain name registration (that is being used for a business, > > > of course)? I'd imagine it would certainly be acceptable to > > > the IRS to take the conservative route and expense 1/10th > > > the registration cost each year (probably as a utilities > > > expense -- does that sound reasonable?) > > > > > But are there any acceptable ways to take it more quickly? > > > Can a registration of more than some number of years be it > > > be considered a depreciable asset (like a sort of capital > > > lease) and so be written off over a shorter period than 10 > > > years (like the 5-year sorta catch-all) and with a more > > > accelerated scheme than straight-line? Can it be Section > > > 179ed? > > > > > Or can it just be considered a simple business expense in > > > its entirety and taken in a single year? I imagine that > > > could be shaky for a 10-year registration. > > I'm not a tax pro but would argue that you can take this as > > a simple business expense in the year paid. The registration > > has no resale value as far as I know and you can not get a > > refund for the part not used. I would therefore expect that > > it does not need to be depreciated. I'm sure I will be set > > straight if wrong :-) > Vic, I'd point out that a domain registration is > transferable and presumably as such would have a value that > a transferor might sell it for. name for say 10 years and then transfer it after 2 years, the remaining 8 years of the paid registration would not be cancelled - they would stay with the domain name. That makes depreciation logical, though I also know that the tax law is not necessarily logical :-) On the other hand, isn't the cost of domain name registration usually too low for depreciation? I was looking at the IRS site yesterday and, except for computer software, it seemed like there is some unspecified cost limit below which items with a life of more than one year do not have to be capitalized. When I worked for a major US company a number of years ago equipment we purchased that cost less than $200 was considered to not be capital equipment and would be expensed in the year purchased instead of depreciated over a multi-year period - even if the life was more than one year. -- Vic Roberts Replace xxx with vdr in e-mail address. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#6
08-09-2005, 05:19 AM
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| Re: How to expense 10-year domain registration? "Victor Roberts" <xxx[at]lighting-research.com> wrote: - quote - > rlcarr[at]animato.arlington.ma.us (Rich Carreiro) wrote:
Vic, I'd point out that a domain registration is> > What is the proper way of expensing a 10-year internet > > domain name registration (that is being used for a business, > > of course)? I'd imagine it would certainly be acceptable to > > the IRS to take the conservative route and expense 1/10th > > the registration cost each year (probably as a utilities > > expense -- does that sound reasonable?) > > > But are there any acceptable ways to take it more quickly? > > Can a registration of more than some number of years be it > > be considered a depreciable asset (like a sort of capital > > lease) and so be written off over a shorter period than 10 > > years (like the 5-year sorta catch-all) and with a more > > accelerated scheme than straight-line? Can it be Section > > 179ed? > > > Or can it just be considered a simple business expense in > > its entirety and taken in a single year? I imagine that > > could be shaky for a 10-year registration. > I'm not a tax pro but would argue that you can take this as > a simple business expense in the year paid. The registration > has no resale value as far as I know and you can not get a > refund for the part not used. I would therefore expect that > it does not need to be depreciated. I'm sure I will be set > straight if wrong :-) transferable and presumably as such would have a value that a transferor might sell it for. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#5
08-09-2005, 04:59 AM
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| Re: How to expense 10-year domain registration? "Harlan Lunsford" <lunstax[at]belllsouth.net> wrote: - quote - > Rich Carreiro wrote:
Many registrars charge much more but .com can be> > What is the proper way of expensing a 10-year internet > > domain name registration (that is being used for a business, > > of course)? I'd imagine it would certainly be acceptable to > > the IRS to take the conservative route and expense 1/10th > > the registration cost each year (probably as a utilities > > expense -- does that sound reasonable?) > > > But are there any acceptable ways to take it more quickly? > > Can a registration of more than some number of years be it > > be considered a depreciable asset (like a sort of capital > > lease) and so be written off over a shorter period than 10 > > years (like the 5-year sorta catch-all) and with a more > > accelerated scheme than straight-line? Can it be Section > > 179ed? > > > Or can it just be considered a simple business expense in > > its entirety and taken in a single year? I imagine that > > could be shaky for a 10-year registration. > I've no idea of the magniture of such an expenditure, but if > something less than... say.... 250$, I'd just write it off > under "dues and publications". obtained for about $90 for ten years. .net & .org a little less than $130. (I am in the business.) Ivan Erwin << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#4
08-08-2005, 11:20 PM
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| Re: How to expense 10-year domain registration? - quote - > > What is the proper way of expensing a 10-year internet
The registration would be capitalized over the life of the> > domain name registration (that is being used for a business, > > of course)? I'd imagine it would certainly be acceptable to > > the IRS to take the conservative route and expense 1/10th > > the registration cost each year (probably as a utilities > > expense -- does that sound reasonable?) registration period. However, if you purchased the rights to a domain name from someone else (i.e. not registration), then this cost gets captialized over the name's useful life. Per CCH, this cost probably cannot be amortized because of the difficulty of establishing the name's useful life. Josh << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#3
08-07-2005, 04:16 AM
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| Re: How to expense 10-year domain registration? "Rich Carreiro" <rlcarr[at]animato.arlington.ma.us> wrote: - quote - > What is the proper way of expensing a 10-year internet
Well on a 10 year registration I would be inclined to> domain name registration (that is being used for a business, > of course)? I'd imagine it would certainly be acceptable to > the IRS to take the conservative route and expense 1/10th > the registration cost each year (probably as a utilities > expense -- does that sound reasonable?) > But are there any acceptable ways to take it more quickly? > Can a registration of more than some number of years be it > be considered a depreciable asset (like a sort of capital > lease) and so be written off over a shorter period than 10 > years (like the 5-year sorta catch-all) and with a more > accelerated scheme than straight-line? Can it be Section > 179ed? > Or can it just be considered a simple business expense in > its entirety and taken in a single year? I imagine that > could be shaky for a 10-year registration. amortize it. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#2
08-07-2005, 03:57 AM
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| Re: How to expense 10-year domain registration? Rich Carreiro wrote: - quote - > What is the proper way of expensing a 10-year internet
I've no idea of the magniture of such an expenditure, but if> domain name registration (that is being used for a business, > of course)? I'd imagine it would certainly be acceptable to > the IRS to take the conservative route and expense 1/10th > the registration cost each year (probably as a utilities > expense -- does that sound reasonable?) > But are there any acceptable ways to take it more quickly? > Can a registration of more than some number of years be it > be considered a depreciable asset (like a sort of capital > lease) and so be written off over a shorter period than 10 > years (like the 5-year sorta catch-all) and with a more > accelerated scheme than straight-line? Can it be Section > 179ed? > Or can it just be considered a simple business expense in > its entirety and taken in a single year? I imagine that > could be shaky for a 10-year registration. something less than... say.... 250$, I'd just write it off under "dues and publications". ChEAr$, Harlan Lunsford, EA n LA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#1
08-07-2005, 03:38 AM
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| Re: How to expense 10-year domain registration? "Rich Carreiro" <rlcarr[at]animato.arlington.ma.us> wrote: - quote - > What is the proper way of expensing a 10-year internet
The first method above would be the correct treatment: like> domain name registration (that is being used for a business, > of course)? I'd imagine it would certainly be acceptable to > the IRS to take the conservative route and expense 1/10th > the registration cost each year (probably as a utilities > expense -- does that sound reasonable?) > But are there any acceptable ways to take it more quickly? > Can a registration of more than some number of years be it > be considered a depreciable asset (like a sort of capital > lease) and so be written off over a shorter period than 10 > years (like the 5-year sorta catch-all) and with a more > accelerated scheme than straight-line? Can it be Section > 179ed? > Or can it just be considered a simple business expense in > its entirety and taken in a single year? I imagine that > could be shaky for a 10-year registration. any prepaid expense with a life of more than 1 year. But I would probably expense it currently if the cost wasn't too high. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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08-07-2005, 03:18 AM
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| Re: How to expense 10-year domain registration? rlcarr[at]animato.arlington.ma.us (Rich Carreiro) wrote: - quote - > What is the proper way of expensing a 10-year internet
I'm not a tax pro but would argue that you can take this as> domain name registration (that is being used for a business, > of course)? I'd imagine it would certainly be acceptable to > the IRS to take the conservative route and expense 1/10th > the registration cost each year (probably as a utilities > expense -- does that sound reasonable?) > But are there any acceptable ways to take it more quickly? > Can a registration of more than some number of years be it > be considered a depreciable asset (like a sort of capital > lease) and so be written off over a shorter period than 10 > years (like the 5-year sorta catch-all) and with a more > accelerated scheme than straight-line? Can it be Section > 179ed? > Or can it just be considered a simple business expense in > its entirety and taken in a single year? I imagine that > could be shaky for a 10-year registration. a simple business expense in the year paid. The registration has no resale value as far as I know and you can not get a refund for the part not used. I would therefore expect that it does not need to be depreciated. I'm sure I will be set straight if wrong :-) -- Vic Roberts Replace xxx with vdr in e-mail address. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#-1
08-05-2005, 12:57 PM
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| How to expense 10-year domain registration? What is the proper way of expensing a 10-year internet domain name registration (that is being used for a business, of course)? I'd imagine it would certainly be acceptable to the IRS to take the conservative route and expense 1/10th the registration cost each year (probably as a utilities expense -- does that sound reasonable?) But are there any acceptable ways to take it more quickly? Can a registration of more than some number of years be it be considered a depreciable asset (like a sort of capital lease) and so be written off over a shorter period than 10 years (like the 5-year sorta catch-all) and with a more accelerated scheme than straight-line? Can it be Section 179ed? Or can it just be considered a simple business expense in its entirety and taken in a single year? I imagine that could be shaky for a 10-year registration. Thanks! -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
| Tags |
| 10year, domain, expense, registration |
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