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Software expenditure

Normally, software is of a capital nature. Therefore, it falls under asset and you should capitalise the cost of purchase and depreciate at the annual rate set by the Commissioner.

However, if the software cost is less than $500, taxpayer can deduct straight in the profit and loss. 

Disclaimer: The following answer necessarily sets out general principles only. The facts of particular cases always need to be considered carefully, and it may be necessary to obtain advice from a tax expert.


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New Zealand Tax Accountant.