Eli5: How is a “tax write-off” beneficial to Warner Bros.?

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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

28 Answers

Anonymous 0 Comments

Spending money for a tax write-off shows how financially illiterate someone is.

I remember years ago my FIL did my taxes (he was a retired CFO so he needed projects) and said “too bad you didn’t have more write-offs”. I responded “ok, let’s play this game: you give me $1, and I’ll give you back 35 cents. We’ll continue this game as long as you feel you’re coming out ahead”.

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