Can you write off business software bought before your first sale?

Yes—software you bought before your first sale may be deductible, but the treatment depends on what the software was for and when your business actually began operating.

If you bought it to get the business ready to open, it is often treated as a startup cost rather than a regular current business expense. For U.S. taxes, qualifying startup costs may let you deduct up to $5,000 in the year the business begins, with the rest generally amortized over 15 years. That immediate deduction is reduced if total startup costs are over $50,000.

In some cases, software may instead be treated as a business expense or as software that must be capitalized and amortized, so the exact tax result can vary based on the facts.

If the business never starts operating, the tax treatment can be different, and you should not assume it is simply deductible as an ordinary business expense.

Because these rules are fact-specific and can change based on the software and your filing situation, it’s a good idea to check with a CPA or tax professional before filing.