How do you expense Profile TY20 T! . Is there CAA involved or just straight expense

Forum|Forum|4 years ago
March 9, 2022
1 reply
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How do you expense Profile TY20 T1 software and License. CAA involved or just straight expense

ProFile (Canada)

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M

MikeACGA

Level 4

It's a one year licence. Just expense it. Unless you feel the need to debate that it can be used longer than a year and then CCA it as software class 12 (100%).

J

jrbooks

Level 4

If you do go the Class 12 route, computer software is subject to the half-year rule. That generally means that 50% of the cost is written off in the year of purchase (for this version 2021) with the remainder being written off in the year of use (again for this version 2022). Over several years, it means that each year sees one expense the equivalent of the year's purchase of the program; half from the previous year's purchase and half from the current year's purchase.

I tend to go the Class 12 route because the cost is substantial.

Jo Ruelle

M

MikeACGA

Level 4

Not sure if this could be applicable in your case or not: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/accelerated-investment-incentive.html

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