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 _______________________________________________ You are currently subscribed to framers as [email protected]. Send list messages to [email protected]. To unsubscribe send a blank email to [email protected] or visit http://lists.frameusers.com/mailman/options/framers/archive%40mail-archive.com Send administrative questions to [email protected]. Visit http://www.frameusers.com/ for more resources and info.
