Comment on Warner Bros. Shelves John Cena's 'Coyote vs. Acme', Despite Having Finished Filming
schmidtster@lemmy.world 1 year agoYou get a write off… if you spend $200 million and wrote it off, now you have $200 million that you don’t need to pay taxes on next time.
Your answer shows you have zero understanding of how taxes work.
stevehobbes@lemmy.world 1 year ago
You’re saying the same thing. But it’s stupid to think like this either way.
Everyone pretends that write offs/loss carry-forwards are some dark magical thing that’s good for business.
It’s not, they’re terrible, it’s just less terrible than not being able to do it.
No one wants to write things down or take losses when they don’t have to.
schmidtster@lemmy.world 1 year ago
No… people get paid unlike the original comment that I was correcting, and it’s not zero percent like the response to me. They will get the tax rate for their state and federal level and that amount say 30% of that 200 million would go against their profit.
It’s a shitty loophole, but people are getting paid and it’s not 0%
stevehobbes@lemmy.world 1 year ago
There are people paid on the net/gross performance of a film that I think they’re referring to- often in addition to a lower salary/wage. They don’t get paid any of that, but also doesn’t contribute to the loss.
It’s not a shitty loophole. And what actually happens if they post a $200M loss, is that when they make a $340M gain the following year it’ll only appear as a $140M gain.
In reality it’s almost certainly netting out in the same year and nothing is carrying forward. Their $5B in profit will just be $4.8B instead because they lost $200M.