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View Full Version : CORE Subscription and U.S. Income Tax question.



TheDynamo
02-25-2009, 11:28 AM
Just a quick question for you more knowledgeable folk out there. When you "subscribe" to a software package maintenance service like Hardcore, can you deduct the whole cost in the year you buy it? Or is it subject to the whole "depreciation" thing that I loathe since most of the software I buy has a 12-18 month upgrade cycle and not the multiple-year cycle the IRS wants.

Flat tax anyone?

-Rob

adamredwoods
02-25-2009, 11:42 AM
***Check with a tax professional first as my answer may be wrong:
I think you get a choice between upfront deduction or spread-out depreciation???
For something so small, like one or two copies, it'd be best to do all at once for that year. For something so expensive that depreciates over time (a building, a car, 1000 computers) that would be spread out.

This is how I'd handle it if it was used for freelance or a small business.