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I'm looking at buying some WordPress plugins which are generally software as a service with an annual subscription. Some of the plugins, however have a lifetime subscription option for a lifetime subscription update.
The annual subscription I would normally book as a prepaid expense reducing the value over 12 months. But if it's a lifetime purchase, would this be an asset or 1 time expense? If it's an expense which asset classes they fall into if they are not systems software and:
1) It is less than $500 CAD?
2) It is greater than or equal to $500 CAD?
I just don't find that examples the CRA docs give provide enough clarity for this type of situation.
Thanks in advance
Record software subscriptions as an expense. You did not purchase the software and are paying a fee to have access to the software for a period of time.