turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Depreciation on $15K training program, web design and support

I spent $15K on a training program for Real Estate investment which includes Web design, and 3 months of support.  I know I can expense the annual renewal for subscription to software, but can I depreciate the training program? over how many years?

1 Best answer

Accepted Solutions
KarenM90
Intuit Alumni

Depreciation on $15K training program, web design and support

It depends.

 

If these expenses occurred prior to you opening your doors for business, the whole package (training, web design and support) could be considered a start up cost, amortized over 15 years.  $5000 of these costs can be expensed in the first year of operation.

 

If your business is operating, I recommend that you expense the training and web support currently, and capitalize and amortize the Web Design portion over 3 years.

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

5 Replies
Carl
Level 15

Depreciation on $15K training program, web design and support

No, you can't depreciate it. It's not a physical asset that you can touch, and it's not something that you use on a recurring basis to produce income.
Besides, the last thing you want to do is depreciate anyway. Remember, depreciation is not a permanent deduction. When you sell or otherwise dispose of the business, all prior depreciation is recaptured in the year you sell or otherwise dispose of the asset and you pay taxes on that recaptured depreciation. The depreciation recapture also increases your AGI which has the potential to bump you into the next higher tax bracket.

If it's a qualified expense, then you have to claim it in the tax year it's incurred. Otherwise, you can't claim/deduct it at all. Overall if this is a program you purchased to learn about the subject matter, it's not a deductible expense at all.

KarenM90
Intuit Alumni

Depreciation on $15K training program, web design and support

It depends.

 

If these expenses occurred prior to you opening your doors for business, the whole package (training, web design and support) could be considered a start up cost, amortized over 15 years.  $5000 of these costs can be expensed in the first year of operation.

 

If your business is operating, I recommend that you expense the training and web support currently, and capitalize and amortize the Web Design portion over 3 years.

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Depreciation on $15K training program, web design and support

Thanks for the answer.  Actually these are startup costs and can be depreciated over 15 years.  Sorry I was not clear in the first place. 

Depreciation on $15K training program, web design and support


@Karenmama wrote:

Thanks for the answer.  Actually these are startup costs and can be depreciated over 15 years.  Sorry I was not clear in the first place. 


Just a warning ... education to get into a new line of work is NOT tax deductible.

Depreciation on $15K training program, web design and support

This would be training to better my skills and access better software supporting our business.

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies