14-11-2023, 01:22 AM
(10-11-2023, 03:56 PM)Ash101 Wrote: deadline.com
Is anyone with business acumen able to explain how these things work? What is the 'tax benefit' of writing off a whole movie that is basically finished and ready to go?
In overly simple terms if a company is set to make a $30m profit, but has to pay 20% tax on it, they may see it as more beneficial to write off a $30m project in this financial year, taking their profits below a threshold on which they'd pay tax (or into a loss) and save themselves $6m in tax, even if it is likely not writing off the project would more than cover that $6m in tax down the line.