Software Purchases
by Murray B
(Saskatoon SK Canada)
Shoud I expense the purchase of software purchases or capitalize them eg QuickBooks or Simply Accounting?
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.