3 ms·
I know taxes are complicated, but can someone explain how a complete loss today is financially better than a smaller loss* over a longer period? * or possibly
by aqme28 3y ago
I know taxes are complicated, but can someone explain how a complete loss today is financially better than a smaller loss* over a longer period?
* or possibly a profit, but no one will ever know.
- readthenotes1 3y agoLet's say you have $1B in profit this year and a really terrible show that cost $1B to make. You can either write it off and pay no taxes on those profits ($200M saved), or not ($200M squandered) (I'm assuming 20% tax rate just to make math easier.) Also, many executives have compensation packages tied to financial metrics and they've been known to game those metrics for personal gain.