The cost of creating a business website is capital expenditure and the costs should be capitalised and depreciated. The ongoing costs of maintaining or updating an existing business website are deductible when incurred. While the costs incurred in updating a business website are deductible the costs involved in upgrading a website are likely to be capital expenditure requiring the costs to be capitalised and depreciated.
Purchasing Domain Names
Expenditure incurred in acquiring a domain name is capital expenditure and non-deductible. The expenditure incurred in acquiring the domain name is also not depreciable.