Software Program Deductions
Small business has many benefits when it comes to the world of tax. Software programs along with other subscriptions that you have associated with your business DO apply as deductions as they are part of your business expenses.
Originally, the cost of software and other such subscriptions could only be deducted by depreciating the cost over a full three year period. Now, Section 179 of the Tax Law allows for you to use the full purchase price, as a deduction, all the shelf software that you use for your business. This deduction is allowed during the year that you purchased the software.
The business that offers things like magazine subscriptions in their waiting rooms, for example, did not have their rules changed. These can still be deducted in the year that you purchased them against your taxable business income.
Remember to keep records of your purchases. You are only entitled to deductions on those software programs and subscriptions that are specifically business related.
This entry was posted on Monday, December 10th, 2007 at 12:03 am and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.