Depreciation of software

GOPIKA845

Can software be depreciated over 5 years? I'm wondering if software can be depreciated over 5 years. I've heard that it can be, but I'm not sure if that's true.

Sara181

The IRS tax code allows for the depreciation of software over a five-year schedule, starting the year the software is placed in service. The amount of the depreciation deduction is based on the cost of the software and the depreciation schedule for the type of software.

Robin164

Yes, software can be depreciated over 5 years. Software meets the requirements for depreciable property under the Internal Revenue Code. This means that businesses can deduct a portion of the cost of the software each year as a business expense on their taxes. The amount of the deduction depends on the depreciation method used.