Can I write off dedicated business software licenses?
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Business software licenses are considered ordinary and necessary expenses for running a business and can be deducted as such. If the software is used solely for business purposes, the full cost can be deducted. However, if the software is used for both personal and business purposes, only the portion used for business can be deducted. For software purchased outright, the cost may need to be capitalized and amortized over a period of years, typically three years, unless the Section 179 deduction is applicable.