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How do I deduct prepaid expenses that cover more than one tax year?
These are all related to our website - domain registration, web hosting, etc. Some were paid before our business began as startup costs and the registration continues - business began 4/2020, payments were made in 10/2018 (3 year domain registration) and 10/2019 (1 year web hosting). We are using accrual method of accounting if that makes a difference. Do I deduct the whole cost in 2020 under startup? Or do I split it to account for the months that were startup and the months that are 2020 (and in the case of the domain registration, save some of the cost for 2021)?
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‎January 16, 2021
5:39 PM