Website development costs can be capitalised, but only when the site meets strict accounting criteria under IAS 38 (international) or similar standards like CRA's IT-195R4 in Canada. The key test is whether the website will generate measurable future economic benefits beyond just marketing visibility. Capitalisable scenarios include e-commerce platforms with transaction capabilities, member portals with subscription revenue, proprietary SaaS applications, or custom systems that reduce operating costs. You must demonstrate technical feasibility, intent and ability to complete the project, capability to use or sell it, and how it will generate probable future benefits. Development stage costs like coding, content creation, and software purchases qualify. Planning stage costs like feasibility studies and initial strategy do not. Brochure websites and standard corporate sites are almost never capitalisable because they function as advertising, which CRA treats as current expenses. The same applies to ongoing content updates, SEO work, and routine maintenance. These hit your P&L immediately. The practical split we see at Ottawa SEO: a $40,000 custom e-commerce build might capitalise $28,000-$32,000 in development costs while expensing $8,000-$12,000 in discovery and content strategy. That capitalised asset then amortises over 3-5 years depending on expected useful life. A $15,000 WordPress brochure site expenses entirely in year one. Watch out for the technical distinction between initial development and subsequent expenditures. Adding new revenue-generating features may capitalise, but redesigning existing pages for aesthetics typically cannot. Your accountant needs detailed invoices that separate planning from build from content. We always invoice website projects with line-item breakdowns specifically because clients need to defend capitalisation decisions during audits. If you are spending $25,000+ on a site that directly enables revenue, talk to your accountant before the project starts. Structure the contract and payment milestones to align with capitalisation rules, not just cash flow convenience.