For example, if you use your car for farm business, you can deduct depreciation for the part you use in farming. If you also use it for investment purposes, you can depreciate the part used for investment. If you use part of your home for business, you may be able to take a depreciation deduction for its business use. For more information, see Business Use of Your Home in chapter 5 . It includes items such as computer software, copyrights, patents, franchises, trademarks, and trade names.
Computer software includes any program used to cause a computer to perform a desired function.
It also includes any data base or similar item in the public domain and incidental to the operation of qualifying software. Generally, you can depreciate software over 36 months. However, if you acquired the software in connection with the acquisition of a substantial portion of a business, you can depreciate it over 36 months only if it meets the following requirements. It is readily available for purchase by the general public. It is not subject to an exclusive license.