Before I hit the "go" button on TurboTax, I wanted to ask a question of you guys...
It's about software. Now, Section 179 type K is "off the shelf computer software." One might think this is deductible, especially if it wasn't a download. However I read Publication 946, which says that the software must be generally available to the public *and* have a nonexclusive license.
I do mostly web design and am trying to get off the ground in voice overs and I also record lectures and make CDs for a research group's conferences, so I like you guys, have a lot of software, some of it audio like Vegas and Sound Forge and Cubase and motion/regular graphics stuff. I'm a "real" business now and this is my first return as such...
I can't think of anything I have that *doesn't* have an *exclusive* license...
The button's set for regular depreciation, rather than regular 179 for hardware like mics and my somewhat annoying Firebox...
Should I leave it like that as I am assuming is correct?
I must say I've been lurking here for years and enjoy your commentary and have learned a lot from you all.
I'm not sure how the IRS has managed to confuse itself here. I treat software as an expense, not a depreciable item, because its useful life (of any particular version) is normally about 1 year or less. And even if that were not the case, I'm paying for a license, not for possession of an object.
<info@ifmproductions.com> wrote in message news:1141262174.422511.66270@p10g2000cwp.googlegroups.com...> Greetings audio pros,>
Before I hit the "go" button on TurboTax, I wanted to ask a question of> you guys...>
It's about software. Now, Section 179 type K is "off the shelf> computer software." One might think this is deductible, especially if> it wasn't a download. However I read Publication 946, which says that> the software must be generally available to the public *and* have a> nonexclusive license.>
I do mostly web design and am trying to get off the ground in voice> overs and I also record lectures and make CDs for a research group's> conferences, so I like you guys, have a lot of software, some of it> audio like Vegas and Sound Forge and Cubase and motion/regular graphics> stuff. I'm a "real" business now and this is my first return as> such...>
I can't think of anything I have that *doesn't* have an *exclusive*> license...>
The button's set for regular depreciation, rather than regular 179 for> hardware like mics and my somewhat annoying Firebox...>
Should I leave it like that as I am assuming is correct?>
I must say I've been lurking here for years and enjoy your commentary> and have learned a lot from you all.>
mc, Carey and John, thank you! I had a feeling that what I was about to do wasn't right. I knew I could get the answer here... drinks on me if we ever meet!
<info@ifmproductions.com> wrote in message news:1141262174.422511.66270@p10g2000cwp.googlegroups.com
I can't think of anything I have that *doesn't* have an> *exclusive* license...
In what sense?
If it is off-the-shelf software that has been licensed to more than one party, then you have a non-exclusive license. That includes Word, Front Page, Quicktime, etc.
Bear in mind that the IRS is not the best source of tax advice. Its booklets try to be accurate but do not necessarily cite court decisions or other kinds of precedent that have clarified the rules. I rely on the Tax Guide for College Teachers (since I'm a college teacher). There are various good books on taxes for small businesses.
mc wrote...>Bear in mind that the IRS is not the best source of tax advice. Its>booklets try to be accurate but do not necessarily cite court decisions or>other kinds of precedent that have clarified the rules.
I'd heard that they weren't the most accurate folks around, I guess it's quite true. Ah, more stuff to learn... all for the good, though. I appreciate your helping me.
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