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Level 4
posted Aug 24, 2024 9:55:44 AM

Where to deduct software expense such as QuickBooks and TurboTax

I was reviewing Section 179 deductions and noticed "software" was included. We are an LLC, taxed as a partnership. We use QuickBooks Online Plus as well as TurboTax. Is it correct to use Section 179 for the deduction, or should it be deducted as an Office expense?

I also saw where you do include sales tax in Section 179 deductions. Is this correct?

Thank you.

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1 Best answer
Level 15
Aug 24, 2024 12:01:42 PM

Items $200 or less, or with an expected life of one year or less, should be deducted as an expense, rather than depreciation or Section 179 (which applies to both TurboTax and Quickbooks).  Entering as an "office expense" is a good place to enter that deduction.

1 Replies
Level 15
Aug 24, 2024 12:01:42 PM

Items $200 or less, or with an expected life of one year or less, should be deducted as an expense, rather than depreciation or Section 179 (which applies to both TurboTax and Quickbooks).  Entering as an "office expense" is a good place to enter that deduction.