Standard practice is a 3-year amortization period for most business websites, which aligns with how quickly design trends and technology change. The Canada Revenue Agency classifies website development as a Class 12 asset (100% capital cost allowance), but spreading the expense over 36 months gives you a realistic picture of useful life before a redesign becomes necessary. Simple 5–10 page brochure sites under $500 can usually be expensed immediately as a business cost rather than capitalized. Between $500 and $5,000, you have flexibility—many small businesses still expense these in year one for simplicity. Once you're spending $5,000–$50,000 on custom development, e-commerce functionality, or integrated systems, a 3-year amortization makes more sense both for accounting accuracy and tax planning. For enterprise platforms or complex SaaS products costing $50,000+, extending amortization to 4–5 years is reasonable if the underlying architecture will remain stable. However, front-end design and UX typically need refreshing every 2–3 years regardless of back-end longevity, so consider splitting these costs if possible. Key factors that affect your amortization period: - Industry velocity: fashion or tech sites obsolete faster than industrial B2B - Maintenance budget: well-maintained sites last longer - Platform choice: WordPress needs more frequent overhauls than custom builds - Content management: sites you update regularly stay relevant longer At Ottawa SEO Inc., we typically see clients replacing or substantially redesigning sites every 3–4 years. Sites older than 5 years almost always underperform on mobile experience, page speed, and conversion rates compared to modern standards. We recommend budgeting 15–25% of initial development cost annually for updates and improvements rather than running a site into the ground, then facing a complete rebuild. Talk to your accountant about whether immediate expensing or capitalization better serves your tax situation in the current year. The accounting treatment should follow the economic reality—if you expect 3 years of benefit, amortize over 3 years.