Sfdebris.net

https://www.hollywoodreporter.com/movie ... 235647011/

You know you mess up when Uncle Sam notice ya.

I wonder if a verdict will also stop the practice of filming a movie and shelving it just to keep the license?

I hope so, I just hope it scare the executive enough to knock it off.

That would be great. Hope it sets a precedent.

https://x.com/kirumus/status/1723125148709015840?s=20

The crew reel for those that haven't seen it as it got taken down a whole bunch. If you want to see just how many people's work got thrown in the trash it's a good thing to check out.

I had wondered how this was even legal, but there's a lot of stuff in the financial world that I don't understand how it's legal.

hammerofglass wrote: ↑Thu Nov 16, 2023 11:34 am I had wondered how this was even legal, but there's a lot of stuff in the financial world that I don't understand how it's legal.

I am not an accountant, but here's my very basic understanding of things. Instead of a film, we'll use a more concrete asset.

TGLS LLC decides to build a factory. All the planning, construction, and fittings end up costing TGLS LLC 10 million dollars. The factory is mostly complete, and all that needs to be done is to buy materials and hire employees to start producing widgets and selling them for a profit (provided the market for widgets is what I think it is). If I open that factory, that 10 million dollars becomes an asset, subject to depreciation rules, and is not an expense. If I declare the factory to be a loss on the other hand, then that 10 million dollars becomes an expense.

Now let's say I know the market for widgets isn't big enough to make back the investment plus the operating costs of running the factory. Let's also say that the rest of TGLS LLC made 100 million dollars. If I declare the factory to be a loss, the net profit is reduced by 10 million dollars, and so I pay less taxes. Given the money spent on the factory is a sunk cost, and modern corporations prefer to make short term gains, writing off a bad asset is a favoured move.

Now, here's where we have to step back into films again. For the factory example, selling the factory and taking a loss that way is another valid move. But what does it mean to "sell" a movie? Like, if I sell the rights to "Acme v. Coyote" or "Batgirl", what am I selling, and what am I keeping? The answer is complicated, but I'm reasonably sure that if Warner Bros completely divested themselves of any interest in the respective film, that they may unintentionally give away rights they're unwilling to give away. So instead of accidentally giving away IP rights, and in a desire to claim a tax loss, they bury movies they aren't sure about.

I can see this turning into legal/bureaucratic nightmare. While this does seem like Warner Bros. being a jerk for tax purposes, what worries me is how many projects are shelved for legitimate reasons?

I heard that Warner Bros. was planning an animated version of "The Judas Contract" but it was canceled just before it started production because there seemed to be too little interest to justify the expense.

phantom000 wrote: ↑Sat Nov 18, 2023 6:09 pm I can see this turning into legal/bureaucratic nightmare. While this does seem like Warner Bros. being a jerk for tax purposes, what worries me is how many projects are shelved for legitimate reasons?

I heard that Warner Bros. was planning an animated version of "The Judas Contract" but it was canceled just before it started production because there seemed to be too little interest to justify the expense.

The issue with batgirl and I think this movie is they were basically completed. Shelving a film before you actually Film anything is unfortunate but no actually created art is being buried there.

MithrandirOlorin wrote: ↑Sat Nov 18, 2023 7:46 pm

phantom000 wrote: ↑Sat Nov 18, 2023 6:09 pm I can see this turning into legal/bureaucratic nightmare. While this does seem like Warner Bros. being a jerk for tax purposes, what worries me is how many projects are shelved for legitimate reasons?

I heard that Warner Bros. was planning an animated version of "The Judas Contract" but it was canceled just before it started production because there seemed to be too little interest to justify the expense.

The issue with batgirl and I think this movie is they were basically completed. Shelving a film before you actually Film anything is unfortunate but no actually created art is being buried there.

Agree, I mean if nothing happen everyone can moved on, but if you already invested that time and money you better need a better reason for it than wanting to save a little money on taxes.