Karaoke software-- 1 year or Amortized depreciation?

In the past, I've been writing off the music purchases as "Supplies" because the hit tunes have a 1-year shelf life (at most) therefore its justifiable to take a one-year write-off on Schedule C.

Another argument, is that "library" Karaoke titles tend to be "permanent" acquisitions which are likely to be used for many years to come. When I buy a title like an old Bob Seger or 80's tune....I'm buying a longer-lived asset than a RPM Top Hits USA disc.

Should I take the 5 year or 7 year useful life schedule on these assets? My inclination is to play it safe, but I've never been questioned on past music writeoffs that were one-year only.

How many of you amortize your depreciable assets over the useful life, and how many are just lumping into "purchases"?

I only consider big ticket items such as high dollar equipment or vehicles as depreciable. Anything else, I just put in the supply category. This seems easiest if you are earning more than you spend. If there is a better reason not to, I have not heard it.

I used to depreciate computers back when they were expensive but not anymore.

Will look forward to hearing other theories.

Same here, I don't worry about stuff under a few thousand -- basically office supplies/other expenses, but no appreciable value to depreciate.

Straight write off.

Yup, "supplies" is where they belong. I worry about items $750.00 and up.

Ditto. I tried as much as possible to be "cash-in, cash-out" on my taxes.

I could see amortizing your start-up library if it meant profit or loss in the first five years of business (to avoid the "hobby rule"). Unless it's a large $$ purchase (like sound or lighting equipment), it's easier to claim it as a single-year expense. Plus, if you amortize and, say, sell a karaoke disk because now you've duplicated all the songs on that disk, you have to report that as the sale of a capital asset rather than minor incidental or standard income (if at all for maybe $20).

OK then.....looks like its the "Expensing Election" for me.....thanks for the advice everyone!