Question

Where does a freelance website developer deduct expenses like hosting and domain names incurred while building websites for clients?

Forum|Forum|6 years ago
January 20, 2020
1 reply
0 views

I have a part-time Website Design & Development Business. I know where most things are deducted, but I cannot find a definitive answer as to where I would deduct the the purchase of the domain (aka website) name and the hosting fees. Please keep in mind, I am not asking about a website for my own business. These are websites built for other small businesses.

I purchase separate hosting accounts for each website. After completion of the website, I bill the client for hosting fees annually or quarterly as long as the website remains live. I include a certain amount of support and minor changes (minor = cumulative changes up to one hour per month) to the website in the hosting fee.

I've done a lot of research and I've found very little and often conflicting information.

TurboTax Home & Biz Windows

LeonardS

Your expenses for the domain name and hosting fees are a deductible expense for your business. As there is no definite line on Schedule C to report these expenses on you may deduct them in Part V Other expenses. For example "Hosting expenses for Client XXXX". You will have clearly identified your expenses by entering them in Part V.

Your fees charged to your clients for web site maintenance is income and will be reported in Part 1 Income on your Schedule C.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"