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Do you (or can you) capitalise software licences

And hardware

     
9:50 am on May 6, 2008 (gmt 0)

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Any thoughts on this from those who understand financial and other implications. THis is for Windows, SQL Server, Terminal Services, Visual Studio & Various dev tools like Visio, RedGate. ALso Servers, Drives, RAM, Laptops.

Whats the pros and cons of putting down hw/sw as an asset on the balance sheet ?

11:27 am on May 8, 2008 (gmt 0)

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It depends on the tax laws in your country but generally you cannot show software license purchase as capital expense. However hardware purchases can be shown as capital expenses (with few exceptions).
9:20 pm on May 15, 2008 (gmt 0)

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After talking to several "experts" it seems you can put software as an asset in the UK, even though the licence prohibits resale. No only that but if you deploy a "server" you can put the total cost of the hw, sw, consultancy, build, test, as this would be the cost of replacing the "server" asset...nice ?

What do you think, is this a good idea ? or better to write it off as an expense in a single month ?

9:31 pm on May 15, 2008 (gmt 0)

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As almost all tax matters, it all depends on your specific situation. For many it will make sense to expense it all at once, whereas others will see more benefit by amortizing it.