Books, Magazines, Newspapers, Software
What You May Deduct
You may deduct costs for purchasing books, magazines, newspapers, and computer software related to your business or profession. You may also deduct costs of magazines and newspapers purchased for your reception area.
Where to Show these Expenses
- For sole proprietors and single-member LLCs, show these expenses in the "Expenses" section of Schedule C
- For partnerships and multiple-member LLCs, show these expenses in the "Deductions" section of Form 1065
- For corporations, show these expenses in the "Deductions" section of Form 1120.
If you buy a book or software that is updated every year, those costs are deducted as expenses. If you are setting up a professional library with reference books, your tax advisor may suggest that you depreciate these costs over a longer time period.
This article presents general information; I am not a tax attorney or tax preparation specialist. Refer to IRS publications and refer questions to your tax consultant.