Most website costs get expensed the year you pay them. The Canada Revenue Agency treats typical business websites as advertising or marketing expenses because they don't meet the threshold for capital assets. If you spend $8,000 on a WordPress site or $25,000 on a Shopify build, that full amount goes on your income statement as a current expense, reducing your taxable income immediately. Capitalization becomes possible when you're building internal-use software that creates enduring value beyond a single tax year. Think custom web applications, member portals with proprietary logic, or SaaS platforms you'll operate for years. Even then, only the development phase costs qualify. Planning and post-launch costs still get expensed. You need to demonstrate the asset has measurable future benefit and a useful life beyond 12 months. The distinction matters for cash flow and tax planning. Expensing gives you the deduction now. Capitalizing spreads it over the asset's useful life through CCC Class 12 (100% in year one under current rules) or Class 50 (55% first year, declining balance after). For a $40,000 custom platform, expensing saves you roughly $10,600 in tax immediately at a 26.5% combined rate, versus spreading that benefit if you capitalize and amortize. Domain names and hosting almost always expense. Design refresh every two years expenses. Annual maintenance contracts expense. Custom integrations that fundamentally change functionality might capitalize if they're substantial enough. At Ottawa SEO, we see clients default to expensing because most projects are marketing sites or incremental improvements. We flag capitalization potential when a client builds something truly proprietary, but we always tell them to confirm treatment with their accountant before the fiscal year closes. The line isn't always obvious, and getting it wrong means explaining variances to CRA later. When in doubt, expense it and move on.