Booked as a loss for what end? Tax reductions are THE reasons for write-downs. You can’t reduce your taxable income with these write downs. There are no recoverable losses to write down. The labor, office supplies, etc. were already deductible. This higher dollar amount doesn’t matter. It would be like saying a store puts 10k on a tv, but always rings it up for 2k. They don’t get to wipe out their taxes owed on their profits by claiming the 8k they made up for a label.
That's not what a non-profit is, and I already discussed how it can't offset your profit. Businesses operate "in the red" all the time. You can have a shitty December that closes out your tax year and show a loss, or you can simply spend down cash that was held over from a fantastic year five years ago. Offsetting your income means SPENDING it. It fuels the economy. You pay taxes on income you KEEP. Businesses constantly reinvest by SPENDING MONEY.
Booked as a loss for what end? Tax reductions are THE reasons for write-downs. You can’t reduce your taxable income with these write downs. There are no recoverable losses to write down. The labor, office supplies, etc. were already deductible. This higher dollar amount doesn’t matter. It would be like saying a store puts 10k on a tv, but always rings it up for 2k. They don’t get to wipe out their taxes owed on their profits by claiming the 8k they made up for a label.
Meaning that it offsets all their income so they operate at a loss/not-for profit status
That's not what a non-profit is, and I already discussed how it can't offset your profit. Businesses operate "in the red" all the time. You can have a shitty December that closes out your tax year and show a loss, or you can simply spend down cash that was held over from a fantastic year five years ago. Offsetting your income means SPENDING it. It fuels the economy. You pay taxes on income you KEEP. Businesses constantly reinvest by SPENDING MONEY.
If you can't tell, I'm in the trade.