3 ms·
Seriously! So many exasperated comments talking about unfair "tax breaks" and whatnot, and very little examination of the mechanics that actually would support
by mindslight 3y ago
Seriously! So many exasperated comments talking about unfair "tax breaks" and whatnot, and very little examination of the mechanics that actually would support this. It's like the Seinfeld "write off" scene.
From the sec 174 discussions, I had thought that movie production didn't even have to be capitalized? Or maybe that's wrong?
But even with capitalization, you'd think that selling the movie to someone else would accomplish the same thing - fast forwarding the depreciation - but with some additional immediate cashflow, part of which goes to taxes.
Unless the goal is to float this narrative for a year or two. Call the movies worthless for now, but retain control. And then finally "relent", re-value them upwards, and monetize? This would skip the current depreciation period and push taxes into the future.