The law is the same here, but we have a generous Section 179 deduction that most businesses can use to deduct 100% of all capital expenses each year. I believe there are also some other temporary "stimulus" provisions in place that allow other methods of deducting the full 100%.
The subscription model can be a valid one for some-- especially very large businesses-- but not for small companies, freelancers, or individual users. Adobe needs to return our choice. Mike On 5/21/2013 2:54 PM, David Shaked 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? >
