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Updated about 5 years ago on . Most recent reply

Account Closed
106
Votes |
127
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Purchasing Tax Software - Business or Personal purchase

Account Closed
Posted

I currently have a single investment property that was in full use for 2019 that was in an LLC. I will be doing my own taxes as I have for the past 10+ years and will be using TurboTax as the software. My question is the following: Is the cost of purchasing the tax software a business expense or a personal expense?

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

@Account Closed

Purchasing something from a business account does not make it a deductible expense. Otherwise, I'd be buying cat food from my business account.

@Jake Hottenrott is technically correct, however the amounts are so small that it may not be worth splitting the hairs. If you deduct the full cost of TT under business, it won't be the crime of the century.

  • Michael Plaks
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