Can I deduct software subscriptions?

Software subscriptions can be deducted as a business expense if they are ordinary and necessary for your business. This means that the software must be commonly accepted in your trade or business and appropriate for your business. For example, if you are a graphic designer and you subscribe to Adobe Creative Cloud, you can deduct this expense. However, if the software is used for both personal and business purposes, you can only deduct the portion used for business. For instance, if you use a software subscription 50% for business and 50% for personal use, you can only deduct 50% of the cost.