A website build belongs on Form 4562, form 4562, carried to schedule c line 13.
Why form 4562
A one-time payment for a site built from scratch buys something you keep using for years, so it is a capital cost rather than a line 8 advertising expense. The usual treatment is to recover it through depreciation or a section 179 election computed on Form 4562, which carries to Schedule C line 13. Hosting, copy changes and small design tweaks on an existing site stay on line 8.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a website build lands on Line 4562 without you sorting it.
Start for freeWhat a website build is confused with
- Line 8, advertising
- Hosting, copy changes, plugin renewals and small tweaks are line 8; a ground up build, or a rebuild that produces a materially better site, is capitalized.
- Line 13, depreciation and section 179 expense deduction
- Form 4562 is where the amount is computed and Schedule C line 13 is where it lands, so the same cost is never entered in two places.
Examples that belong on form 4562
- $9,000 paid to an agency for a new booking site
- A $4,500 custom theme and store build
- $12,000 for a membership site with custom development
- $2,800 to rebuild a site from scratch on a new platform
What does not belong here
- Monthly hosting, which is line 8
- A $300 copy refresh on existing pages, which is line 8
- Build costs incurred before the business began, which are startup costs under section 195
The limit that applies
A section 179 election or bonus depreciation may let you deduct the build in year one, but it is still elected on Form 4562 and reported on line 13 rather than written onto line 8.
What to keep
Keep the development contract and invoices, filed separately from the hosting invoices. The date the site went live is the date placed in service.
Other expenses on form 4562
| Expense | Line |
|---|---|
| a new roof on a business building | Form 4562 |
| a used machine bought second hand | Form 4562 |
| a work van or truck | Form 4562 |
| buying a business vehicle | Form 4562 |
| expensing or capitalising a purchase | Form 4562 |
| improvements to a rented studio | Form 4562 |
| legal fees to buy property or defend title | Form 4562 |
| sales tax paid on a capital asset | Form 4562 |
| workshop machinery such as a 3D printer | Form 4562 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a website build lands on Line 4562 without you sorting it.
Start for free