In the end of 2022, my company made a significant transaction, which involved purchasing a package of software programs that includes title transfer and all rights, such as copyright. The transaction accounts for approximately 70% of the company's equity value. I am having trouble figuring out how to recognize this purchase in TurboTax.
After some research, it seems like the software package should be classified as "intangible, other property," and then "amortizable intangibles." However, I am confused about the amortization process that TurboTax is requesting, especially which code to choose. Should I choose code "195: business start-up costs" since the software package will become a significant part of the company's business? Or should it be "174: research and experimental costs"?
In addition, TurboTax requires the life of the asset to be determined. How should I determine this, and is it purely based on my judgement?
Furthermore, when entering the details of the purchase, the closest option available is "I purchased this asset" since it is the company that made the purchase. Can you please confirm if this is the correct option to select to accurately reflect the purchase in TurboTax?
