Turbo Tax and business expenses for software

[zetta]

I'm going through Turbo Tax, itemizing my business expenses, and I can't figure out where to put a software package that I purchased for $90. Here are the catagories and examples that come closest:

Assets (depreciation) -- computers, copiers, office furniture
Supplies -- pens, papers, printer ink
Other Office -- bottled water, shredding
Misc -- answering services, bank charges

[MonkeyMama]

Other or Misc. If it was much more (like over $100) I'd probably depreciate it (straight line - 3 years - can take Section 179 - fully depreciate now - for Fed but NOT for your state).

Since it's under $100 I would put it to "office expense," personally. But if Turbo Tax doesn't give you that option, "other" should do. Generally it's good to have a rule in place to only depreciate assets over "x" amount. As long as you are consistent and the amount is reasonable. The IRS understands you don't want to depreciate every $50 asset (technology has gotten so cheap!). Software is considered an asset though.