Checkmark iconCan I Write This Off?

Can I write off bookkeeping apps like QuickBooks?

TL;DR

Yes, bookkeeping apps like QuickBooks can generally be written off as a business expense.

Detailed Answer

Bookkeeping software expenses are deductible as ordinary and necessary business expenses if they are used for managing the financials of a business. This deduction is applicable to both small businesses and self-employed individuals. However, if the software is used for personal financial management, it is not deductible. For example, a freelance graphic designer using QuickBooks to track income and expenses can deduct the cost of the software.

Where to Put It on the Tax Form

Schedule C, Line 18 (Office expenses) for sole proprietors or as a business expense on the relevant business tax form.

Real World Example

A small business owner purchases an annual subscription to QuickBooks to manage their business finances. They report the cost of the subscription as an office expense on their Schedule C when filing taxes.

Audit Risk & Documentation Tips

Keep receipts or invoices for the purchase of the software and any related subscription fees. Maintain records showing how the software is used for business purposes, such as financial reports or bookkeeping records. This documentation can help substantiate the deduction in the event of an audit.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsRetailers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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