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In the past, they used another technique as well, they used corporate money to buy Dogecoin (and some Bitcoin too) to justify investments. Not in a small amoun
by rvnx 2y ago
In the past, they used another technique as well, they used corporate money to buy Dogecoin (and some Bitcoin too) to justify investments.
Not in a small amount, we talk about more than 1B USD.
https://techcrunch.com/2022/07/20/elon-musk-discloses-that-tesla-owns-dogecoin-but-how-much-does-it-have/ https://techcrunch.com/2022/07/20/elon-musk-discloses-that-t...
From a tax perspective, they are spending to acquire assets, which is very convenient.
- nickff 2y agoNot all spending is tax-deductible, I believe that only expenses are generally 100% tax deductible on day one.
- Maxatar 2y agoBuying dogecoin or any crypto, security or asset can not be deducted though. Losses can be deducted, and the depretiation of various assets can be deducted, but the purchase itself isn't considered an expense and can't be deducted. Otherwise all companies would just buy gold with their profits and never pay taxes.
- kjksf 2y agoBuying Bitcoin doesn't reduce taxes. It's no different than investing company's cash into a different currency or bonds. In fact, when Tesla bought Bitcoin accounting rules for Bitcoin were very unfavorable in that the bitcoin wasn't valued at the price in a given quarter but, and it's hard to believe, only at the lowest ever price. So on paper the company could only loose money by holding Bitcoin. That idiotic rule was part of Democrat's lawfare against Bitcoin. This accounting rule was changed recently. Also, Tesla never bought Dodgecoin. That Techcrunch article is just wrong.