Just to provide some background: I run an online, Amazon business. I purchased some online software this year that, essentially, searches Amazon for profitable books to sell and cross references those items to sources for purchase. The software works via web browser and integrates with Amazon as noted above.
This software had a large initial purchase price along with a monthly fee. I know the monthly fee would be treated as an expense. I'm fairly certain the software is legally depreciable given that it is: (1) Used for an income producing business activity, (2) Is readily available for purchase by the general public, (3) Is subject to a nonexclusive license, and (4) Has not been substantially modified.
These things being true, I believe this qualifies the initial purchase price to be depreciated over 36 months (according to IRS depreciation guidelines for computer software). Does anyone have a different or confirming opinion?
