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.


Another point to consider is if an owner eventually wants to sell his company. 
Using the past CS model, he could say to a future buyer that the company holds 
as assets n licenses of Adobe software, worth $xxxxxxxx. It increases the value 
of the company. With the CC model, you will hold no assets, and instead have a 
liability for future rentals. This could potentially cost a business owner WAY 
more than any tax benefit.

Mike Wickham


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