Software Purchases

by Murray B
(Saskatoon SK Canada)

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

image of fancy scroll lines

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.

Click here to post comments

Return to Ask a Bookkeeping Question.


Back to top