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 <david at almondweb.com> 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?
