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As I understand it, there is no loophole here. They’re not getting any discount on their taxes for writing it off. They’re just not going to make any money to
by notatoad 3y ago
As I understand it, there is no loophole here. They’re not getting any discount on their taxes for writing it off.
They’re just not going to make any money to be taxed on. If you paid them $1m for it, they’d have to pay tax on that million. And that’s all they’re trying to avoid.
- PebblesHD 3y agoThen why not release it for free? I suspect the poster above might be right that the loss is on the investment creating the thing not the income tax.
- tourmalinetaco 3y agoPersonally I wager the film doesn’t actually exist and was a way to launder money out of the company. If all they wanted to do was use the expenses of the movie as expenses write-offs while not making any money it makes far more sense to leverage it in other ways, such as showing it for free.
- arandomusername 3y ago> They’re just not going to make any money to be taxed on. If you paid them $1m for it, they’d have to pay tax on that million. And that’s all they’re trying to avoid. That doesn't sound like a reasonable explanation. Yes they would have to pay tax, but they would still be left with majority of it.