They’ve just cancelled their upcoming film “Coyote vs. Acme,” and everyone is calling it a tax write-off, just like they did with the cancelled Batgirl film.
Having spent so much on the production of these films, how is it beneficial to them to cancel the film outright? What is a tax write-off in that sense?
In: Economics
Others have explained what a tax write-off is very well, but what’s often misunderstood is that a tax write-off isn’t something you really want, it’s just the better alternative to having spent huge sums of money on something without gaining anything from it, you can at least salvage a small part of that back in tax savings.
But no one with any modicum of intelligence seeks out to reduce taxes this way on purpose, you would rather spend $500 in taxes than $5,000 avoiding that tax.
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