Should we capitalize the full amount of the one-month subscription for online market research software (costing less than $200) under CCA class 12 (100%) and apply the half-year rule for amortization over two years? Alternatively, should we simply record the entire amount as an expense?
I would expense the entire amount.
2 Likes
Software subscriptions are license agreements to use the product. As such, the corporation does not own the product. You can’t amortize a product that you do not own, so it won’t be placed into a CCA class. There was a discussion about this a while back in this forum, so I’m merely repeating this info.
As @obhorst suggests, fully expense it. I record mine under Business Licenses and Permits (GIFI 8760 default), although there may be a better GIFI code to use.
1 Like