USA Fixed Assets- software licenses

[Jenny Alvarez -Poindexter]

Should software licenses be included in my PP&E? I’ve read it depends on the value - $100,000.

 

[Drmdcpa]

Should software licenses be included in my PP&E? I’ve read it depends on the value - $100,000.

It depends on the software not so much the value. But the larger the value the more likely it will need to be capitalized.

If it is long term use, it gets capitalized. Even if it is capitalized some may be able to be expenses. For example an annual licensing feel included in the price can be expenses while the rest would need to be capitalized.

 

[Steve-LevelUp]

Also consider if it is a one time license fee or an annual licence fee. Annual licence fees (regardless of the price) should not be capitalize (costs such as Salesforce fall into this category)