eli5 How will DC get a tax write off for not releasing bat girl? How do tax write offs work anyways?

Question

eli5 How will DC get a tax write off for not releasing bat girl? How do tax write offs work anyways?

In: 2

Answer 1

Essentially it’s a business expense. When companies spend money for business purposes, they are able to write that money off at tax time to reduce their tax bill. So, spending millions to produce a movie that will not be released is an expense that they won’t recuperate through sales, and is a net loss that can be written off.

I’m sure someone with more knowledge can provide a better answer, but that’s the gist of it.