BobTheDuck
Engaged Member
- Dec 24, 2018
- 2,778
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The problem with writing off assets is you have to depreciate them over time, while you still need to acquire new assets. As it's depreciated over ten years, he's not able to claim the full cost in one year, but he's actually paid out the full cost in one year. the following year, he needs more assets, so he's further out of pocket and still can't claim the full expense, so he ends up getting taxed on more money than he has each year. Sure it helps in other years, but if you need to buy something on a yearly basis it hurts really quickly.I dont really give a shit as mila is probably my least favorite LI but holy shit, her old look is like so many leagues above the new one at least in these two pics. While playing i didnt noticed the difference this much tbh.
And it kinda sounds like ocean didnt really understood his tax office or they explained it badly? If his liquidity is really fucked he shouldnt buy a lot of music for a lot of money anyway and otherwise whats the difference about writing it off for 10 years compared to a shorter duration? Esp if he bought this much licences already, it should be a good yearly tax reduction.
Its pretty obivous that he will still be developing summers gone in 10 years lol
That's probably why he went for cheaper licenses that were yearly, because subs get taxed as a different expense, because they're a lease instead of a purchase.