jklcpa Posted February 3, 2012 Report Share Posted February 3, 2012 Just curious whether you are deducting the annual cost of the ATX software yearly, or are you recording it as 3-year off-the-shelf software and depreciating since it is available to use for as long as it will run on your computers. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 3, 2012 Report Share Posted February 3, 2012 We deduct it annually. Even though it will run indefinitely on our computers, the main use of it is in one year, and it must be replaced every year (if not with ATX, at least with some tax product.) Quote Link to comment Share on other sites More sharing options...
Kea Posted February 3, 2012 Report Share Posted February 3, 2012 Same here. As an added note, I deduct it for the year I use it (later of date purchased or put in service). Granted, I do sometimes install and test in late December but I still show the deduction in the year of primary use. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 3, 2012 Author Report Share Posted February 3, 2012 I deduct it each year too, but I was curious if anyone was capitalizing it. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 3, 2012 Report Share Posted February 3, 2012 Deduct all in the year purchased. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 3, 2012 Report Share Posted February 3, 2012 I deduct it in the year of purchase. For all intents and purposes; it is "used up" each tax year. I use cash method acctg for my business and clearly list it on the Sch C as Tax Prep Software. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 3, 2012 Report Share Posted February 3, 2012 Software expense each year Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 3, 2012 Report Share Posted February 3, 2012 >>clearly list it on the Sch C as Tax Prep Software.<< This is a good idea. I have been listing it under office expense but I will start listing it separately from now on.Like ThisUnlike Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 3, 2012 Report Share Posted February 3, 2012 I used to depreciate it, but started expensing at least 5 years ago. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 3, 2012 Report Share Posted February 3, 2012 Expense it as an annual license. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 4, 2012 Report Share Posted February 4, 2012 I expense it on the year I pay for it. I am always late, so I never purchase two in the same year. Quote Link to comment Share on other sites More sharing options...
Terry O Posted February 4, 2012 Report Share Posted February 4, 2012 I do the same - - write it off each year - - clearly mark Tax Prep software on Schedule C since it is a rather large amount. Quote Link to comment Share on other sites More sharing options...
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