24 November 2010 External T.I. 2010-0380521E5 - Web page costs -- summary under Patents or other intangible property

Respecting whether expenditures made by a taxpayer to develop a web page on the Internet would be a capital or current expense, CRA stated (per its summary) that:

Where the "web page" will only have a relatively short useful life the related costs should be treated as a current expense. However, if the "web page" is expected to have a long useful life then the costs should be treated as a capital expense.

CRA also indicated that the costs of application software purchased from third parties to develop a web page, and the labour costs of development, would likely constitute "applications software" under Class 12 of Schedule II, rather than "systems software."

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