Software Purchases

by Murray B
(Saskatoon SK Canada)

Shoud I expense the purchase of software purchases or capitalize them eg QuickBooks or Simply Accounting?

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Hi Murray,

Software purchases other than your operating system ate expensed.

However, for tax purposes, it is classified as CCA rate 12. Rate class 12 is depreciated at 100%, so you may want to book it to an asset account called Computer Software-Class 12.

At year-end, the account will be depreciated ... which is when the amount will be expensed.

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