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whether you purchased off the shelf software included within the website purchase price, if you did, it would be amortizable over 3 years. Also, if you ever abandon a website, there would be a way to remedy the need to accelerate the deduction. But, in your case, you'll probably just need to amortize it over 15 years. Just be aware there may be exceptions out there. The tax code has always been in strife with itself.
Amortization is the conversion of the trademark assetâs value into an annual expense, which reflects the asset's loss of value over time. To determine how much to amortize the trademark by every year, take the original value of the copyright and divide by the remaining years of the trademarkâs term. The result is the annual amortization expense. To amortize the trademark, decrease the trademark's asset value by the annual amortization expense. So if you have a new trademark you are only going to keep for one term, and it is worth $1000, the value of the asset would decrease $100 every year over 10 years.