>> 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
