Per IRS Pub 535, computer software acquired with the purchase of a business is considered a Section 197 intangible and is amortized over 15 years. This is not a start-up cost or research & development.
Instead, enter this as an Intangible >> Amortizable Intangible that was purchased, code Section 197, useful life 15 years.
Also, if this software is inventory to be sold to the public, the amortization expense would be included in Cost of Goods Sold.
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