Depreciation of Computer Software Program

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notataxguru
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Joined: Mon Sep 19, 2016 3:09 pm

Depreciation of Computer Software Program

Post by notataxguru »

:?: The normal depreciation period for an eligible computer software program is 36 months. Does the financing method of the purchase modify the ability to depreciate the software ? We are considering a computer software program that can be purchased by the public, but which carries a $2 million price tag, is readilly available and does not need to be modified by the purchaser, similar to shrink wrap software. Assuming that 35% of the purchase will be financed with a three year note, and that 65% will be financed with a note with no defined maturity, but with an amortization period and interest based on a formula related to certain performance criterias, will the software still be depreciable over 36 months?
An answer will be highly appreciated
notataxguru
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