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When your house burns down, you get to tell your insurance that you suffered a loss. When you burn your own house down, you don't. I can only assume that WB's
by Brian_K_White 3y ago
When your house burns down, you get to tell your insurance that you suffered a loss.
When you burn your own house down, you don't.
I can only assume that WB's lawyers know things and there must be technicalitioes and discrepencies such that you CAN effectively do that with the IRS even though your would go to jail for trying that with insurance.
But in a sane world...they're burning their own asset, and they should be legally allowed to do that, but just not claim it as any sort of misfortune to any party, private insurance or public taxes.
- gruez 3y ago> When your house burns down, you get to tell your insurance that you suffered a loss. >When you burn your own house down, you don't. That's not how it works at all. The reason why you can't collect your insurance policy when you burn your house down is because it specifically says it doesn't pay out if you intentionally set it on fire. No such clause exists for the tax system. Companies destroy inventory all the time to get write-offs on them.
- camillomiller 3y agoExactly. And rightfully so! The tax system can't be opinionated, or it would be extremely legally unstable. Unfortunately, for this reason, it's also a system that can't bake in any level of morality on the way legal tax loopholes are exploited, even when there's a clear moral downside in burning an asset that's the byproduct of intellect.
- heyoni 3y agoThey’re not claiming insurance though. The question you should ask is whether burning your own house down is considered a loss on your tax returns? I don’t see why not.