Is Website Hosting Tax Deductible? A Comprehensive Guide for Business Owners

Running a business requires a lot of expenses, and it's important to know which ones are tax deductible. Web hosting costs are considered fees and subscriptions, meaning they're deductible to your return. Domain and e-commerce hosting are tax-deductible, as are web design templates, stock images, and updates to store themes. Tools like Evernote, SEM Rush, MOZ, Hootsuite, Buffer or Skype can also be deducted if used solely for business purposes.

Interest paid on business credit cards or small business loans is also tax-deductible. The distinction between internal and outsourced development lies with the person responsible for the functionality of the website. It's important to note how you deduct your website hosting and other expenses each year to make things easier for yourself. You can calculate the percentage of the square footage of your home that you use for business and apply that percentage to housing expenses, rent or mortgage interest, property taxes, electricity, heating, water, and anything else that allows you to occupy your home.

Fortunately, you can get a little relief by deducting things like your web hosting server, domain, and various programs. Taxes can be painful but they can also inspire you to devote part of the profits to real expenses that you can cancel in this case, marketing. The IRS often looks for employers who try to avoid paying employment taxes by classifying employees as contractors. On the other hand, you wouldn't claim an expense such as accommodation or renewal fees as advertising content since they are considered a normal business expense.

For resellers, if your customer pays you for web hosting, unfortunately this cannot be claimed because your customer covers this cost when you pay you for the server.

Ryan Paquette
Ryan Paquette

Hardcore pop culture aficionado. Lifelong social media specialist. Amateur beer fanatic. Proud tv fanatic. Friendly web trailblazer.

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