"Where would you report contracting a web designer, programmer, graphic designer etc. on business taxes?"

Asked by B 32 months ago

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A web site being considered advertising (usually), would the costs associated with contracting a web designer, programmer and/or graphic designer to make a website be rolled into advertising expenses or be reported as contactor or professional fees.


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"Professional fees....."
 by happytobeme on Jun 07 2007 (32 months ago)
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I would record these costs as professional fess as they are paid to an individual or company who is providing you a professional service.  This is also helpful when you go to fill out your 1099s to have all fees paid to individuals for consulting services in one account.

 

I would put fees paid to others to list your advertising as advertising expense.

 

And just another thing to remember, for what its worth.  While the classification of income and expenses (what they are called, what line they go on, etc. should be some relevance to reality, the most important thing is that they are reported and you have documentation to evidence the amount and their actual payment.  In my career I have managed the IRS audits of several large corporations.  What they really care about is that you have support for the items listed in your return.  If its in other expense versus advertising expense is not as important.  So hopefully you won't have to beat yourself up as much in getting the classifications right. 

 

Again, hope this helps.....
Sources: Professional experience

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"I would roll it all up into advertising expenses."
 by Nikki on Jun 12 2007 (32 months ago)
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You cannot really separate the components here, because they are all necessary for the final product - the web site. I always like to think of these things with paper. If you were contracting for a bill board, the actual printing and physical delivery of the billboard would probably be all rolled up into one expense combined with the design of the billboard itself.

The same thing would apply here for the web site, except it is all electronic.
Sources: My opinion.
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