You could argue for either, but IMHO its an expense. You COULD capitalize it over life of computer. Even better is to use one of the free/cheap alternatives and not worry about it..--Answer1:An expense is normally considered a cost you could incur repeatedly, like paper, or electricity. An asset is normally something that you have to pay for once, and you have something tangible with value. With a software license, it is kinda neither. I would consider it an asset, as it has a value, and not a cost you would repeatedly incur..--Answer2:You may treat it both ways based on the capitalization policy of a company. For large corporations with capitalization minimum amount of more than the purchase cost, the software purchase would be expensed. For small companies with capitalization minimum of less than the purchase cost, the software would be capitalized..--Answer3:Its a depreciating asset. It is productive, but at the same time losing its original value as the days go by..--Answer4:It really depends. Usually, you capitalize (in the case of software, its amortized over 3 years, straight-line) anything over a certain amount. In our firm, we capitalize over $300 for clients. Others start lower or higher, that part is a matter of personal preference. To be safe, I wouldnt capitalize anything under $100 or so, and even thats pushing it.Sorry Im not more familiar with prices these days, my husband, a computer guy, purchases all of our home software, and the firms IT department purchases all of our professional software. But if its over $150 or so, and you want to amortize, go for it. If you want to expense, Id say under $350 or so could be argued for.Good luck. :0).--Answer5:Software is generally regarded as being an expense, particularly for something as inexpensive as Microsoft Office.Major software developement projects would usually be capitalized because of the development period and the expected benefits over time.However, why would you want to even buy Microsoft Office these days when you can get Open Office for free which is an excellent program.Cheers,