How many of you are just paying for a monthly subscription on your home inspection software instead of buying it outright? Just starting out I’m trying to weight the pros/cons. I know you would pay more for the subscription in the long run but you would get all the updates free and I would think the tax write-offs would be better for a subscription service.
That is a conversation between you and your accountant. You do have an accountant, right?
With something as important as Report software you better decide based on other factors besides lack of available funds . Your report represents your business and it is hard to switch later once you get it all going.
Buying out right is what, $600 to $1000 depending on what program you select. It’s not that big of an investment in the grand scheme of things. 2-3 inspections will pay for it.
And I can attest, switching software once you get going is painful.
I didn’t say there was a funds issue. I just wondered if anyone was using the subscription services offered by software such as Home Gauge or HIP. Even though it cost more in the long run, I just wondered if it was worth it based on the extra services you get and the always having an updated edition.
BINGO !!! We have another winner in seat #1
Nope. Both 100% tax deductible.
The only way I can see it having anything to do with taxes would be if you are showing a loss one year and a profit the next (or vice versa). If that’s the case, you’d want to spend more in the year you are showing a profit and so might want to pay for the full software in that year.
Like I said… he should be having this discussion with his accountant. How can anyone on this MB have any idea what his financial situation, goals, encumbrances, etc. are?
So your business plan is to lose more money by buying software the most expensive way possible so that you pay less tax because you lost the most money possible? I honestly think that 90% of people don’t actually understand what a write off is, which correlates with the 90% of businesses that fail within the first 5 years. If you’re really so rich that you need to start intentionally buying things the most expensive way possible because you hate the government so much that you are willing to throw away money to save being taxed 20% of that money… just donate it to charity and people who could use it instead.
Writes offs are only at the end of the year after paying out hard cash month after month after month after month. Unless you are only doing 1 or 2 inspections per month, buy it outright.
Believe it or not, there are inspectors out there paying a “per report” fee for months and years because they didn’t want to pay the fee outright. Of course they have paid more in fees than they would have paid for one copy of just about every software program out there. You can’t fix stupid.
The inspectors who pay for software per report are not stupid, they just want to pay when they get paid. Not all inspectors are full-time inspectors. Some work other jobs and get 3 or 4 inspections a month. Especially those just starting out. Softwares that offer per report plans also offer cheaper alternatives for long-term usage, so when the inspector’s business increases, they switch to a more cost effective plan.