OT: Corporate madness - Adobe software to be subscription

[Mike Wickham]

>> 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