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New Member
posted Jul 20, 2019 12:25:04 PM

What is the asset category for financial software?

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2 Replies
Level 15
Jul 20, 2019 2:01:58 PM

For software that is off-the-shelf (available to the public), has not been modified, and is subject to a nonexclusive license, you can use 3-year, straight-line. The software may also qualify for the Section 179 deduction and special depreciation allowance. 

 

See 

https://www.irs.gov/publications/p946#en_US_2018_publink1000107354

Level 2
Jul 20, 2019 2:22:34 PM

If the "financial software" is, say, an accounting program, and it costs you less than a typical monthly cell phone bill (such as Quicken), I'd expense it under legal/professional (bookkeeping) expense. For that matter, I'd expense the cost of the more expensive QuickBooks.

If it costs thousands or hundreds of dollars, as accounting software used to cost, and if you plan to use that software for multiple years, you're going to need to call it an asset and depreciate it. In that case I don't know what would be the asses category.