Level 3

SECTION 179 FOR SOFTWARE 2024

Forum|Forum|1 year ago
February 7, 2025
2 replies
23 views

The program is not allowing Section 179 (partnership with profit) for software why?

Level 15

Computer software is generally a section 197 intangible and cannot be depreciated if you acquired it in connection with the acquisition of assets constituting a business or a substantial part of a business.

However, computer software is not a section 197 intangible and can be depreciated, even if acquired in connection with the acquisition of a business, if it meets all of the following tests.

If the software meets the tests above, it may also qualify for the section 179 deduction and the special depreciation allowance, discussed later in chapters 2 and 3. If you can depreciate the cost of computer software, use the straight line method over a useful life of 36 months.

Answers are easy. Questions are hard!

F

frankgcpa1Author

Level 3

Software is 179 deductible if it meets the requirements this was not my reason for the post. The Sec 179 does flow to the K form correctly as deductible but does not show up on the depreciation worksheet. There is no depreciation shown on the worksheet seems odd!

George4Tacks

Level 15

Which software are you using? You posted in Tax Talk, which is not program specific.

Answers are easy. Questions are hard!

sjrcpa

Level 15

And some states, such as MD, do not allow 179 for software.

What category and life did you enter in the depreciation section?

The more I know the more I don’t know.

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