Computer consultants fixed bugs and made enhancements to our proprietary software. The cost is large enough to capitalize but should I expense?

It depends on your tax situation for the current year and projected earnings for future years. If you expense it, you will save taxes for this year, and if you capitalize it the tax savings will come from depreciation in the future. If you are planning to get any type of loan in the near future, expensing that item might drop current income bellow an acceptable level. I hope this helps.

It depends on your tax situation for the current year and projected earnings for future years. If you expense it, you will save taxes for this year, and if you capitalize it the tax savings will come from depreciation in the future. If you are planning to get any type of loan in the near future, expensing that item might drop current income bellow an acceptable level. I hope this helps.

Yes, that helps, thank you. We are a non-profit so I will capitalize.

Computer consultants fixed bugs and made enhancements to our proprietary software. The cost is large enough to capitalize but should I expense?
It is a expense. Not Capital