Tax and rental software

[Francisco Penaloza]

So Tax season is up for us here in USA and while getting ready to prepare mines I found that the person helping me to do Taxes was placing all the rental software as depreciate. For what I understood, when all this rental fever started, it was mentioned that this method of payment can be fully deducted and not depreciate like old buy software. Am I right?

I ask the Tax person and he told me this is the only way, so for me there is not difference between rental software or buy a permanent license... it does not sound right to me.

any ideas??? how you deal with it?

thanks.

[John Dollus]

You don't own it so it is not a depreciating asset. It's a business service much like a cell phone bill

[Francisco Penaloza]

Something like that is what I thought, so I need to ask him to put it as expenses? as you mentioned, phone bills rents and such?

 

Thanks BTW for the input.

[innerdream]

Deduct it all on schedule C as an expense, just like a web site would be completely deductible.

[heni30]

You can list miscellaneous expenses on the back of Schedule C such as software, books and magazine subscriptions.

 

If you work at home you can deduct all home expenses times the per cent of the sf of your work area of your total home sf.

[Francisco Penaloza]

yes the house thing I do, I have a small office there.

Thanks for your input, tax people usually know a lot but somtimes I think they need to go out to learn new sutff

 

thanks