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Get fast write-offs for computer software

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. My company bought vital computer software in 2006. Can we deduct the entire cost under Section 179? K.C.R., St. Louis

A. Yes. Due to a recent tax-law change, your business can write off the full amount of off-the-shelf software in the year you buy it. Previously, the write-off period was restricted to three years. To qualify, the software must be available for purchase by the general public, subject to a non-exclusivity license and not substantially modified.

This tax break is scheduled to expire after 2009.

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