What does your accountant say about this?
 

Does he tell you to write off content as an expense, or as a fixed asset?

An expense can be written off in the year it was incurred, but a fixed asset is typically depreciated over a period of years.

There is a rule that allows 100% depreciation of assets that are under a certain value.

So how does your accountant tell you to write off your content?

Purchased/licensed content is an expense and exclusive shot content is a fixed asset for us that is depreciated over 5 years before it is considered nothing more than bulk/scrap.

PS if anyone needs a good accountant for next tax season or quarterlies I have one that will handle it all online and over the phone that is completely cool with working with those in the adult sector. He is too booked for this tax period but in general is great to work with.