2022 – 11/14 – Computer software costs: How does your business deduct them?
Most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software for your use or sells it to others. In any of these situations, you should be aware of the complex rules that apply to determine the tax treatment of the expenses involved. The rules depend on whether the software is purchased, leased or developed by your business. For example, you must deduct amounts you pay to rent leased software in the tax year they’re paid, if you’re a cash-method taxpayer, or the tax year for which the rentals are accrued, if you’re an accrual-method taxpayer. We can assist you in applying the tax rules for computer software costs. https://bit.ly/2NMIz4g