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Beginner’s Guide to Website Tax Deductions

March 12, 2018 By Tara DuBois Leave a Comment

Beginner's Guide to Website Tax Deductions

Some brick and mortar business owners shy away from the investment of a company website. But, in order to run a successful business in 2018, you need a business website.

We all understand that designing and launching a new website can be a daunting task, and often a costly one. But, the good news is that your business website may be tax deductible, so read on to learn more.

A Basic Guide to Website Design Tax Deductions for the New Business Owner

As a new business owner, you might want to know whether the costs of website design are tax deductible, leading up to the new tax year.

Good news! A lot of what goes into designing, launching, and maintaining a business website is deductible because it typically falls under “marketing.”

While we are simply website people and we can only provide you with our interpretation of the IRS’s rules, we do know a little about what you can and can’t write off when it comes to your business website. But, ultimately, you should definitely speak to a certified tax professional about whether your website design and maintenance costs are tax deductible.
So, How Do You Write-Off Website Expenses?

First off, it would seem that there are no formal guidelines as to whether website design, development, and maintenance costs can be deducted. In order make it work, some tax people recommend including it in write-off categories that correlate closely with a website as a tool and business asset.

A new business website will require quite a bit of upfront costs, including design, development, platform fees, and subscription costs. Because of this wide range of individual costs, the rules will sometimes differ, as website design may be considered a start-up cost.

Code 197 governs Amortization of Goodwill and Certain Other Intangibles reads as follows:  

“A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible. The amount of such deduction shall be determined by amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 15-year period beginning with the month in which such intangible was acquired.”

Websites are intangible, which means that this category is best suited to website costs.

However, a website design has a relatively short lifespan – it is standard practice to refresh the site content once a year and redesign the entire site every three or four years – and should therefore not be deducted over fifteen years.

What If My Website Is Software-Related?

Websites that are considered software follows the rules for Tax Deduction Guidelines for Purchasing Software. As such, a software website’s costs can be amortized over the three years following the date it goes live.

Your website may be considered software if:

  • It dynamically interacts with users.
  • It interactively generates data.

This means that many e-course platforms may be considered software depending on the extent of the customizability and user interaction required to return data.

How About Advertising or Marketing-Related?

When website design is considered advertising, it opens the door to the most favorable tax write-off category. However, insofar as can be deduced, only websites with product listings or displayed products may be considered as advertising.

Ideally, you should speak to your accountant about the best way to claim tax deductions for your website and related costs. While you’re at it, don’t forget to ask about:

  • Personal funds invested in your business.
  • Charitable donations.
  • Home office space or co-working spaces.
  • Office phone use.
  • Mileage.
  • Business travel costs.

Don’t overlook any available tax deductions this year. A professional accountant can talk you through all the different options.

Filed Under: Business Development, Live Life Unbound, Living Life Unbound, new post, simplicity, Time and Money, Unbound Freedom, Uncategorized Tagged With: running a small business, small business, tax deductions, website design, website development, website maintenance

Top 5 Reasons Running A Business is Hard & How to Rock It

February 26, 2018 By Tara DuBois Leave a Comment

Top 5 Reasons Running A Business is Hard & How to Rock It

Running a business sounds like a great idea – in principle. Having no boss to answer to is wonderful for an independent or introverted entrepreneur. But let’s be honest, some parts of running your own business can be hard. It’s no secret that many businesses fail in the first few years, but your business needn’t become a statistic.

Let’s look at the biggest struggles small business owners face in more detail so that you can be prepared to deal with it and succeed in the world of entrepreneurialism.

Top 5 Reasons Running A Business is Hard & How to Rock It

1. You will want to do everything on your own.

When you start your business, you will be tempted to prove yourself – it’s only natural. However, pride or an unwillingness to look for or accept help can cause you to make costly mistakes.

Don’t fall in this trap. Understand that no person can do everything perfectly and that successful businesses consist of teams of people who each brings his or her talents and skills to the table. Also, you can’t do everything on your own. Each day only has 24 hours, after all!

2. You may receive feedback you don’t appreciate.

You started your business because you feel that you have a great product or service. Your family and friends may even agree. But ultimately, the most important opinion is that of your target audience. For your business to succeed, your product or service must provide the perfect solution to their problem. Sure, if your product is quite good, they will buy it initially, but if you want it to be their go-to solution and if you want them to refer people to you, it has to provide the ultimate solution.

Be open to feedback from the market. Accept it gracefully, and consider suggestions before you bin it. Let your market help you fine-tune your solution to suit their needs.

3. You may want to diversify.

The employment market changed dramatically a few years ago. We went from grey-suited drones to a vast horde of digital nomads. It was scary at first, and the thought leaders of the remote working, freelancing movement advised us to DIVERSIFY. They figured that having your rods in as many ponds as possible will ensure that you catch some fish. However, the modern consumer demands a different type of service provider – they demand the best of the best.

If you want to succeed in a modern world, you need to be the best of the best in your niche. Specialize, but make your service as excellent as possible by offering value-added services to your core product or service.

4. You may be afraid to charge upfront.

If you offer services, you may not feel comfortable charging upfront. It’s a quandary, as clients want to see your work before they pay you, but if they decide not to pay – for whatever reason – you will lose bargaining power.

Find ways to reach a middle ground, because time is money.

5. You may be tempted to undercharge.

In a competitive world, you may undercharge to secure more contracts but beware of making a habit of this, especially early on in your career. When you first start out, you may not have the experience to know exactly how long a project takes, or the additional expectations clients may have. Charging too little – even across more projects – is not sustainable.

Instead of selling at a lower price point, compete on excellence – quality products and services, professional expertise and specialization. Accept that clients who price shop will always opt for the cheaper price, but there are many clients who want quality, even at a higher hourly rate. Those are the clients who will stick around for much longer.

Running a business is hard, mainly because you will always feel that you never really know what you’re doing and whether you’re doing it right. Rest assured that most small business owners feel the same way. Ultimately, being patient and flexible and responding to the needs of your target market is what you need to do to stay current.

Filed Under: Business Development, decision making, Engage & Nurture, Live Life Unbound, Living Life Unbound, new post, Sales Funnel, simplicity, Time and Money, Unbound Freedom, User Experience and Mobility, Value Tagged With: running a business, running a small business, small business

11 Best Blogs to Follow for Small Business Inspiration

February 12, 2018 By Tara DuBois Leave a Comment

11 Best Blogs to Follow for Small Business Inspiration

One of the best things about being a small business owner is that the world is your oyster when it comes to finding inspiration. You can select a mentor to follow and emulate, or you can select a bunch of successful people from whom you can draw inspiration. There’s literally no limit.

In keeping with that, we decided to compile a list of Best Blogs to Follow for Small Business Inspiration.

Best Blogs to Follow for Small Business Inspiration

  1. Big Ideas for Small Business – Headed by Barbara Weltman, the blog’s content deals with technical and legal aspects of running a small business.
  2. Success Harbor – George Meszaros inspires small business owners to achieve success by their definition.
  3. EOFire – Kate Erickson inspires entrepreneurs with great content and step-by-step resources on how to start and build their businesses.
  4. Location Rebel – If you’re a new small business owner still looking to earn your first few thousand dollars online, Sean Ogle will inspire you to break through with his awesome tips on online marketing, productivity and building a lifestyle business.
  5. Buffer Blog – Learn all you need to know about how you can use social media marketing to the benefit of your business with Ash Read’s in-depth posts.
  6. Social Media Examiner – Lisa Jenkins runs the world’s most prolific social media marketing resource.
  7. A Better Lemonade Stand – Starting a business involves thousands of little decisions. Richard Lazazzera will help make those decisions easier.
  8. Nav Blog – Kali Geldis provides great financial advice for small businesses. Learn how to save money while running a successful business.
  9. The Personal MBA – Don’t let your lack of a business degree make you think you can’t run a business because this blog provides helpful tricks and tips to help you become a pro at managing your business.
  10. Smart Hustle – Grow your business to the next level with insightful commentary and interviews with Guy Kawasaki and other inspiring business celebrities.
  11. Hubspot – Hubspot’s marketing blog is a thought leader in the world of online marketing, sharing insightful content, data, research, and reports.

There you have it! Our favorite blogs for small business owners to follow. Did we mention your Best Blogs to Follow for Small Business Inspiration? Please share in comments below!

Filed Under: Business Development, Live Life Unbound, Living Life Unbound, new post, simplicity, Time and Money, Unbound Freedom, Uncategorized, Value Tagged With: running a small business, small business, small business inspiration

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