In the US, you can choose not to depreciate software, provided it
meets certain conditions and you haven't exceeded certain limits:

http://www.irs.gov/publications/p946/ch02.html

For WebWorks, for me the subscription model penciled out as cheaper in
the long run. We have to update our browser support regularly, which
usually means new browser-version-specific bugs that require updating
our help generation tool.

I paid for the first year with the money I saved by not upgrading to
RoboHelp 10, which would have cost the same $800 since we have
RoboHelp 9 as part of TCS 3.5.

On Tue, May 21, 2013 at 12:54 PM, David Shaked <[email protected]> wrote:
> An aspect I haven't seen mentioned in this thread: taxes
>
> According to Israeli tax law, if I purchase a perpetual license for a
> software application, it's a capital expense. I have to depreciate the
> purchase over several years. I cannot deduct the full expense from this
> year's tax return.
>
> If I pay a smaller fee for an annual subscription license, I not only smooth
> out the cost, but I can deduct the full amount in the current year.
>
> Is the tax treatment the same in the US and other countries?
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