What does the phrase ‘can you capitalize software’ mean?

[jondeven]

I want to know about this because I am confused while working that software’ should be capitalised

 

[nikhilrajoria]

Capitalizing software spares from being taxed and gains financial reportingDelta: The implication of capitalization, which should be reflected by financial statement net assets, is that the cost of developing or acquiring software is shown as an asset but not an expense on the tax filings.

 

[Aliza]

It means deciding whether software costs should be recorded as an asset (capitalized) or treated as an expense in accounting.