Tax Write-Offs for Losses
Discussions center on whether companies or individuals gain tax benefits from business losses, write-offs, or destroying assets like IP, with debates clarifying that deductions only offset taxes at the marginal rate without eliminating net losses.
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I wonder if they can claim that as a loss and pay less taxes?
Isn't this a drop in the (tax write-off) bucket for them?
You're misunderstanding how taxes are calculated. If they could deduct the writeoff, they'd make back their marginal tax rate times the purchase price, so they'd still lose around $2B. (Similarly, when people deduct their mortgage interest, they don't get the mortgage "for free".)
Why? Many are reporting losses. Do you expect them to pay taxes on something other than profit?
How is it beneficial tax-wise to lose $1 million?
How is it beneficial tax-wise to lose $1 million?
How is it beneficial tax-wise to lose $1 million?
It matters very little. They can write off much of this "loss".
it may be lost to spend but can't you spread the loss out over some years and never pay taxes for that period?
What's the point of a tax write off if you lose $200 million a year?