Website costs are tax deductible for Canadian businesses, but the CRA distinguishes between current expenses and capital expenditures, which changes how you claim them. Current expenses like monthly hosting fees, domain renewals, minor content updates, and routine maintenance can be deducted in full during the tax year you incur them. These are considered normal operating costs. Capital expenditures include building a new website from scratch, major redesigns that significantly improve functionality, or adding substantial e-commerce capabilities. The CRA typically requires you to capitalize these costs and amortize them as Class 12 assets at 100% declining balance, though some practitioners argue for Class 14.1 at 5% annually depending on how the site creates enduring value. The line gets blurry with projects in the $8,000–$25,000 range that might be partial redesigns versus complete rebuilds. SEO services occupy a grey area. Ongoing monthly SEO work (content updates, link outreach, technical fixes) usually qualifies as current expenses since you're maintaining or incrementally improving an existing asset. A one-time comprehensive SEO overhaul that fundamentally restructures your site architecture might be capitalized alongside the development cost. When we build sites at Ottawa SEO, we typically structure invoices to separate hosting and maintenance from design and development, which gives clients cleaner documentation for their accountant. The practical approach is to discuss anything over $5,000 with your accountant before the fiscal year ends. They'll consider whether the expense creates a new asset or simply maintains an existing one. Keep detailed invoices that break down hosting, content, design, and development separately. If you're operating as a sole proprietor or partnership, these deductions reduce your net income on your T1. Corporations claim them against corporate income on the T2. Either way, proper documentation matters more than the specific classification when CRA comes asking.