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.

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 doe 2k. They don’t get to wipe out their taxes owed on their profits by claiming the 8k they made up for a label.