this post was submitted on 10 Feb 2024
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Movies

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If you have a passing interest in film and animation, you've likely heard of Coyote Vs. Acme, a feature film in the Roger Rabbit tradition of blending 2D animation with live action focusing on characters from Warner Brothers' Roadrunner cartoons. The film would have focused on Wile E. Coyote suing the ubiquitous Acme corporation after decades of selling him faulty products, and by all accounts appeared to be a passion project from everyone involved. The movie was, in fact, complete and ready for release- only for Warner Brothers to kill it at the last possible second in the name of a multi-million dollar tax writeoff.

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[–] [email protected] 71 points 9 months ago (3 children)

Make 10 things for $10.

Try to sell each for $100, say only one sells.

Rather than take a lower price, you write off the 9.

Your taxable income is now $10. And your average profit per thing is $90. Which is good for stock prices.

Mix in Hollywood accounting, and you might even still not have a taxable income. Plus, those other 9 aren't competing against the 1 that made it. They're concentrating all the profits in one thing, which makes marketing easier

But really, it all comes down to manipulating stock price.

[–] [email protected] 18 points 9 months ago

Mix in Hollywood accounting

there's definitely some accounting shenanigans going on.

[–] [email protected] 5 points 9 months ago

Do they write off the other nine things for $90 or $900 based on the value of the materials or the estimated value of the work. I assume if they say, "we earned $100 but it cost us $900 to do that," on your taxes that you can get your taxes owed down to about zero.

[–] [email protected] 24 points 9 months ago (1 children)

But you didn't try to sell the other 9? You made them for $10 each and then threw them straight in the trash.