Explaining "Write Offs" to Modern Day Media Critics

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  • Опубликовано: 2 ноя 2024

Комментарии • 77

  • @stephenshelton4267
    @stephenshelton4267 Месяц назад +54

    I'm glad someone brought this up. It reminds me of those who complain about rich people making a charitable donation because "they get a tax deduction". If you spend a dollar at a charity you only get, what, 38 cents back on taxes? You're still behind 62 cents!

    • @dr.elvis.h.christ
      @dr.elvis.h.christ Месяц назад +4

      And it's only 38c against what you paid.

    • @stephenshelton4267
      @stephenshelton4267 Месяц назад +3

      @michael.di3 What I mean is, you donate a dollar to charity and people scoff and say, "They only did that because it is a tax write off!" as if you donate a dollar to Habitat for Humanity and next April Uncle Sam gives you a dollar on your tax return.
      I know charitable donations can reduce your tax burden but it's not at the $1:$1 ratio. Donate to a charity and you will be financially behind tax credit or not.

  • @markwalks4205
    @markwalks4205 Месяц назад +23

    Thank you for explaining the meaning of this phrase “write off” to people.

  • @free_at_last8141
    @free_at_last8141 Месяц назад +65

    The mountain of money that's been burned chasing an imaginary Twitter/Tumblr-based market is a wonder to behold.

    • @vinculaomega5283
      @vinculaomega5283 Месяц назад +15

      I bet it'd put the Joker's bonfire to shame.

    • @tailgunner2
      @tailgunner2 Месяц назад +1

      Beat me to it​@@vinculaomega5283

    • @cosmictreason2242
      @cosmictreason2242 Месяц назад +4

      Write-offs are not the real reason the corpos are doing bad art. Money laundering (nephew owns the catering company) is a bigger part, but by far it's the investments from the hedge funds and private equity firms that are covering the losses and basically paying the corpos to act against free market forces for the sake of The Message™️, and propping them up with dark money courtesy of our retirement accounts.

  • @jdraven0890
    @jdraven0890 Месяц назад +15

    Yes! I had a retail business that I closed. My CPA determined from records that I had lost approximately $12,000. My CPA "wrote off" this loss over a period of two or three years.
    I didn't get this money back from anyone. As I understand things, the loss simply reduced my Federal tax liability to near zero until it was offset by my net positive income from my job. I would much rather have paid taxes rather than losing $12,000. It is the silver lining of a massive srorm cloud at best.

  • @nco_gets_it
    @nco_gets_it Месяц назад +21

    if the tax code got real fair, people would start rioting real fast. But the real example is this: on your individual taxes you get a "standard deduction". Guess what that is?
    That's right, a "write off". College fund deduction? Write off. Before tax 401K contribution? Tax deferment. Mortgage interest deduction? Write off. As you can see, we ALL get "write offs".

    • @dr.elvis.h.christ
      @dr.elvis.h.christ Месяц назад +1

      Is there a *fair* way to steal? Yes, it would be nice though if there was a simpler way to do it. A sales tax only screws over people on pensions that usually don't keep up with inflation.

  • @cosmictreason2242
    @cosmictreason2242 Месяц назад +12

    Write-offs are not the real reason the corpos are doing bad art. Money laundering (nephew owns the catering company) is a bigger part, but by far it's the investments from the hedge funds and private equity firms that are covering the losses and basically paying the corpos to act against free market forces for the sake of The Message™️, and propping them up with dark money courtesy of our retirement accounts.

  • @b.lloydreese2030
    @b.lloydreese2030 Месяц назад +18

    My ex-wife got a six-figure job like 8 years ago and and she had a friend telling her to open an LLC so that we could "write stuff off" needless to say that didn't work very well. Also prior to that for many years my ex-wife had a constantly out shopping for and buying furniture that we didn't need and most of it just stacked in the basement unused and when we moved we had to sell a bunch of it at a loss

    • @JacAmo13
      @JacAmo13 Месяц назад +1

      😂 women, can't live with um, can you please pass the beer nuts

    • @Adelina-293
      @Adelina-293 Месяц назад +1

      Legally there are limits on what and how much you can write off before the government comes after you.

  • @httm241
    @httm241 Месяц назад +33

    Write offs are a means of damage containment

    • @dr.elvis.h.christ
      @dr.elvis.h.christ Месяц назад +1

      Writeoffs mean you don't pay taxes on money you never made in the first place.

    • @andrew8168
      @andrew8168 Месяц назад

      ​@dr.elvis.h.christ it's recognizing something they thought was an asset as an expense. They spent $150M on Concord and had it on their balance sheet then moved the entire thing to expense when they realized it was worthless.

    • @dr.elvis.h.christ
      @dr.elvis.h.christ Месяц назад

      @@andrew8168 The purchase itself is a business expense, therefore a write-off.

  • @mr220v
    @mr220v Месяц назад +7

    The way things are going, I don't think Disney is going to have enough profitable enterprises to cover these massive write offs.

  • @CanadianSpiderMan
    @CanadianSpiderMan Месяц назад

    Shout out to Valliant Renegade! All of the Midnight's Edge Crew too! Excellent video topic Cappy. Keep up the good entertaining yourself (I find Clownfish and Drinker entertaining as well, but you get more of my view time man!)

  • @cosmictreason2242
    @cosmictreason2242 Месяц назад +3

    Cappy you need to get on Friday Night Tights with Nerdrotic, or Open Bar with Critical Drinker

  • @pwnDonkey
    @pwnDonkey Месяц назад +4

    and yet workers dont get to write off anything going to/from work. which is a cost of earning income

  • @Ssm19494
    @Ssm19494 Месяц назад

    I always wondered about that

  • @michaelbuddy
    @michaelbuddy Месяц назад +3

    "A write-off means the film company will refund your ticket money for their unlikeable movies" ~Somebody on the internet probably

    • @dr.elvis.h.christ
      @dr.elvis.h.christ Месяц назад

      Imagine if the studios went to a donation model for income.

  • @Wet_Willys_Wetter_Water
    @Wet_Willys_Wetter_Water Месяц назад +5

    I mean no disrespect by this, but the fact that reasonably intelligent and nonconforming people have such a terrible misconception of what a write off is, really drives home how terrible of a job parents and the education system is doing. It's such a basic concept, especially for people running profitable youtube channels.

  • @StoicLion
    @StoicLion Месяц назад

    Cappy and I have similar interests. We both like redheads, big boobs, motorcycles, we're both closet weebs and we listen to some of the same pop culture critics. Similar to Cappy, I also have some financial knowledge - I'm no graduate of THE Carlson School of Business, but I get by - but it pains me listening to my favorite critics talking about "writing down" loses at these studios. Some, not all, don't really understand what that means and the long-term impact to the studios' bottom line.
    I think Cappy should reach out to Gary/ Nerdrotic; you might enjoy discussing the minutiae of tax writeoffs with him...but in a pre-recorded video. Doing that live with that gaggle of goofs on Fright Night Tights, as fun as they are, would be a slog to get thru. Clownfish TV might also be willing to have a discussion, they are business owners and very knowledgable about the business side of media.

  • @86abaile
    @86abaile Месяц назад +2

    Thanks for the explanation. I think they're imagining a similar situation to the batgirl movie that was canned even though it was close to completion. It was rumoured to be a "tax write off" or "tax break". I'm not sure where those rumours come from or if there's some sort of mechanism that would require them to scrub the film from existence rather than release it.

  • @aussiewanderer6304
    @aussiewanderer6304 Месяц назад

    I think what people forget is the money that people who make money during the movie and never make a loss: the production companies.
    The Rock has multiple production companies that make millions of dollars on top of his personal salary.
    So many people make money off the side whether or not the movie is successful.
    Truth be told it's more like money laundering for the production company owners who are using the investors money to gamble on movies.
    Remember, the only people who consistently made money during the Gold rush were the people selling shovels and picks.

  • @ChiefWombatCuddler
    @ChiefWombatCuddler Месяц назад +1

    The Write Off wand comes with ESG/DEI investment firms that are in bed with Govt interests.

  • @kevinizatt4358
    @kevinizatt4358 Месяц назад

    Short version: write offs for a failed movie etc don't make anyone money, they just help them lose less by having less profit to tax. Its a band-aid on a cut, your still injured and lost blood but now you will hopefully stop bleeding.

  • @josiah5776
    @josiah5776 Месяц назад +2

    I doubt Cappy will ever run out of material for "originals." 😆

  • @chicopluma
    @chicopluma Месяц назад

    well isn't a write off like step 0.5 in a 5 step bussiness plan. spend 100, make 1000, write off 100, reinvest 900 in growth and branching, keep reinvesting profit to minimize taxes and maximize growth that translates to stock value. At least that's how I understand it on paper. Negative profit ain't the goal.

  • @literalvampirepotbellygobl5629
    @literalvampirepotbellygobl5629 Месяц назад

    Yeah, when the average American sees "write-off" they assume that it means the corporation just magically gets that money back. So if a company makes a $5 million donation, people think they just like magically get $5 million back or something stupid.
    No, the corporation still lost $5 million dollars, and has already put that into their accounting books, but what the write-off means is that instead of having to pay taxes on, for example, $500 million in revenues, you only have to pay taxes on $495 million.
    That's all it means.

  • @beyuwallace
    @beyuwallace Месяц назад

    Cappy is going to need a consult I’ll write to you on the website. Various topics. 30 Mins should do.

  • @jwoodswce
    @jwoodswce Месяц назад +3

    Aren't these "write-offs" simply accelerating depreciation because they don't forecast meaningful future revenue or writing down the asset value as a loss because they are destroying the asset?

    • @CC-ru8pi
      @CC-ru8pi Месяц назад +1

      Seems like all of the above. Basically an admission by the publisher that they think the immediate value of terminating the product and taking the loss for tax purposes, then reinvesting it somewhere else or using it to pay down debt, is greater than any possible future returns that the product would generate.

  • @ac2-rm141
    @ac2-rm141 Месяц назад

    I have a question regarding this topic. An airline can depreciate the cost of an airliner as it ages, is this a "write off? "
    If the tax code did not allow this depreciation to occur, would this cause the price of airline tickets to increase?

  • @daztiny9052
    @daztiny9052 Месяц назад

    They might be confusing tax with business insurance but they do not pay out for making a poo product .

  • @dassix1636
    @dassix1636 Месяц назад

    Imagine the US govt ever allowing people to avoid paying taxes.

  • @lawr5764
    @lawr5764 Месяц назад +3

    People really didn't know this is what a write-off is? JEEZ! And I don't even have any "finance" or accounting training.

    • @Markbell73
      @Markbell73 Месяц назад +3

      Have you looked at the K through 12, plus most 4 year colleges?
      If Student A isn't self starting, self disciplined, self driven, self educated regarding this subject, nor almost any other.
      They sure as water is wet, aren't gonna learn it in school.

  • @michaellombardi5831
    @michaellombardi5831 Месяц назад

    Question? Like batgirl movie and failed Concord game, where Sony refunded every sale, dont they get a tax rebate or more money back when something is a total loss? What incentive do they have for pulling and refunding a product?

    • @diemes5463
      @diemes5463 Месяц назад

      I thought it was a deduction on what they owe in taxes, not a refund.

    • @btafan11
      @btafan11 Месяц назад +1

      They get to deduct the full $200m production costs immediately instead of amortizing them over time

  • @Evangelionism
    @Evangelionism Месяц назад

    2:50 LMAO

  • @IVAN-bh2dy
    @IVAN-bh2dy Месяц назад

    Its called book balancing…

  • @bruhverlybruh4012
    @bruhverlybruh4012 Месяц назад

    He never has specified wether those have been worn or not. 😂

  • @user-yk4gd1fl4z
    @user-yk4gd1fl4z Месяц назад

    Ok got it. Let’s get back to chics suck.

  • @KN0852
    @KN0852 Месяц назад +15

    How do most of you guys still make profit, even with the downturn of the economy and ever increasing life standards

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      @rk0l59hs-6g Месяц назад +1

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      @rk0l59hs-6g Месяц назад +1

      Mrs Donna Patricia Hester.

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      @thehouseowner-q7u Месяц назад +1

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      @notbeingfooled-j6n Месяц назад +1

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  • @jaredhighlands4604
    @jaredhighlands4604 Месяц назад

    Lol clown fish

  • @mustknowinfo2001
    @mustknowinfo2001 Месяц назад

    This lady at church would donate 100 grand and then write it off as a charity donation but the money actually went to the pastor who was married to her daughter so it was a complete scam in my opinion karma sucks for those people's kids