5 ms·

> The US tax code is very clear on that point and is not open for debate. Anyone who has ever worked with an accountant knows this isn't true. The law is a se

> The US tax code is very clear on that point and is not open for debate. Anyone who has ever worked with an accountant knows this isn't true. The law is a series of gray areas at best. You can have three accountants do your taxes and get three results, because each applies different interpretations to the laws. And going in front of a judge won't get extra clarity -- three judges would give you three different opinions. > If the studio decided not to release the movie it was most likely because the expected marketing and distribution costs exceeded the expected revenue. Maybe, but it tested better with test audiences than any other movie they release this year, so that's highly unlikely. Also, they specifically said they were doing it for the write down.

boeingUH60 3y ago
I love how you're being called out for how wrong you are on this thread, but somehow manage to double down and always ask "but what about?..."
- jedberg 3y ago
  But that’s what tax accounting is. Asking “what if we interpret the tax code this way?” It’s all gray areas. See my sibling comment about how to write off future profits.
  - boeingUH60 3y ago
    No it's not. But sure, "They just write it off!"
  - mminer237 3y ago
    There are some gray areas in the tax code, but this isn't one of them. You write off your basis in a capital loss. There's no legal justification for writing off "lost profits". Trying to do so would just be tax fraud. Even if that were a thing, the fact that it would cost more to release it than not shows that the profit value is negative.
FrobeniusTwist 3y ago
>> The US tax code is very clear on that point and is not open for debate. > Anyone who has ever worked with an accountant knows this isn't true. The point being referred to here is that you can't take a deduction for profits you would have made in some hypothetical world where things had worked out better for you. It's not all gray areas, and this particular point is entirely un-gray. Nor does the article that you "tl;dr"'ed into this quip support you here. It just says that the studio decided not to risk any further losses.
- jedberg 3y ago
  See my sibling comment, but yes you can.

boeingUH60 3y ago

I love how you're being called out for how wrong you are on this thread, but somehow manage to double down and always ask "but what about?..."

jedberg 3y ago
But that’s what tax accounting is. Asking “what if we interpret the tax code this way?” It’s all gray areas. See my sibling comment about how to write off future profits.
- boeingUH60 3y ago
  No it's not. But sure, "They just write it off!"
- mminer237 3y ago
  There are some gray areas in the tax code, but this isn't one of them. You write off your basis in a capital loss. There's no legal justification for writing off "lost profits". Trying to do so would just be tax fraud. Even if that were a thing, the fact that it would cost more to release it than not shows that the profit value is negative.

FrobeniusTwist 3y ago

>> The US tax code is very clear on that point and is not open for debate. > Anyone who has ever worked with an accountant knows this isn't true. The point being referred to here is that you can't take a deduction for profits you would have made in some hypothetical world where things had worked out better for you. It's not all gray areas, and this particular point is entirely un-gray. Nor does the article that you "tl;dr"'ed into this quip support you here. It just says that the studio decided not to risk any further losses.

jedberg 3y ago
See my sibling comment, but yes you can.