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Level 2
Sep 10, 2023 2:49 AM UTC
Question

Selling multiple year software support contracts

Hello. If I sell a '3 year software update and support contract' for $1000, does the $1000 income get spread over the 3 years or just the 1st? Thank you.

2 replies

Level 15
Sep 10, 2023 2:54 AM UTC

Income is required in the tax year it was earned. 

Level 2
Sep 11, 2023 5:12 AM UTC

Thank you for answering!