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Security Software Deductibility

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    Security Software Deductibility

    I rely on three programs to keep my computer which I use for both business and personal purposes, free of malicious and joke programs. The backbone is Internet Security Suite A. (I will Identify products if asked by pm or email but I don't want to be seen as either endorsing or criticizing computer security products on a public board when I am not an expert in the field.) I would have to pay for it regardless of the use I made of the program. I told them I am a home or home office user so I paid a lower fee than a business user would have paid for the same software but with enhanced phone support hours built in and additional tech support options for sale. Under either plan it seems clear to me that I would have to either count files on the hard drive or hours of computer use and apportion the cost accordingly so I don't bother to try to write this product off my taxes.

    However I also use products B and C. Both have free versions for home users but given that I ever use the computer for business they require me to pay. C gives me exactly the same program but with priority tech support and B gives me more functions than in its free version in addition to priority tech support. I can honestly say that if I were not in business it would not have occurred to me to explore the paid versions of these programs but now that I have them I am glad I have them and if I for some reason stopped business use of the computer I would be MLTN to renew the paid versions when the time came instead of dropping back to the free versions or replacing the programs. So here is my question - Would I have even "reasonable basis" for writing off the whole costs of these programs based on the demonstrable fact that the makers encourage non business users to take the free versions?

    The only software I currently deduct is the obvious tax prep software and other utilities that clearly only someone providing services for others would use. I probably wouldn't buy MS Office without the need for it in business but since I have it I use it more for personal than business and calculating the business portion is too much bother. The reason I don't have the same thought about it that I do for programs B and C is that the free alternative of Open Office is not made by Microsoft and is available for free for business users who so desire.
    Last edited by erchess; 10-17-2008, 04:35 PM.

    #2
    Security Software Deductibility

    I depreciate over three years the tax program that I use because I do compliance work or amended returns in following years. I expense the full cost of all other business programs that have a one year expiration date and also expense the renewal each year.

    I take the full amount on either because the program is necessary to my business whether I use it once a day, once a month, once a year or 24/7.

    The reasoning is that "Joe the taxpayer" is allowed to expense his Turbo Tax program as a tax prep expense even though he only used it once and purchases a new one every year. I do not believe that business programs require allocation of use.

    I don't think it is a good idea to install personal software on your business computer. You might want to put the personal software on an external drive if you don't have two harddrives on one computer or two computers.
    taxea
    Last edited by taxea; 10-20-2008, 02:14 AM. Reason: to add info
    Believe nothing you have not personally researched and verified.

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