Website design costs can be capitalized under both IFRS and ASPE if the website meets the definition of an intangible asset—meaning it provides identifiable future economic benefit and you control the resource. A basic brochure site typically gets expensed immediately. An e-commerce platform, client portal, or subscription service with clear revenue attribution usually qualifies for capitalization. CRA guidance allows capitalization when a website facilitates income generation, not just brand awareness. You capitalize the development phase costs—design, coding, content creation, testing—but expense preliminary planning and post-launch content updates. Hosting and domain renewals always expense as operating costs. The capitalized asset then amortizes over its useful life, typically 3–5 years for most business websites given how quickly design standards and technology evolve. The dollar threshold matters. A $3,000 WordPress site rarely justifies the accounting overhead of capitalization. A $40,000 custom platform with membership features, integrations, and proprietary functionality makes capitalization worthwhile because it spreads the tax deduction and better matches expenses to the revenue the asset generates. Practical considerations often override accounting theory. Many small businesses expense everything immediately because it's simpler, provides an immediate tax deduction, and avoids tracking amortization schedules. Larger companies or those seeking financing may capitalize to strengthen balance sheets and smooth earnings. At Ottawa SEO, we see clients capitalize when they're building revenue-generating properties in our portfolio—sites with affiliate income, lead generation value, or SaaS components. A simple service business site gets expensed. The decision hinges on three factors: the site's revenue role, the total cost relative to your financials, and whether you benefit more from immediate deduction or asset recognition. Your accountant should make the final call based on your specific tax situation and financial reporting needs, but understanding the distinction helps you budget and plan appropriately from the start.