How AI software depreciation works

When your business buys software, the cost may be recovered through depreciation. Certain rules can let businesses deduct a large portion of qualifying purchases in the first year rather than spreading it out.

The basics

• Off-the-shelf software that is purchased and placed in service in your business may qualify for depreciation.
• Section 179 may allow eligible businesses to expense qualifying purchases up to annual limits in the year they're placed in service.
• Bonus depreciation may allow an additional first-year deduction on qualifying property.
• Limits, timing, and eligibility change and depend on your business — that's why a CPA reviews every case.

What happens in your consultation

1. You share basic information about your business.
2. An AI software expert learns about your goals and suggests solutions that fit.
3. A qualified CPA reviews what depreciation amounts you may qualify for.
4. You decide — there's no obligation.