said by MxxCon:Why do you say that? Why wouldn't they get huge tax write-offs
I always get a kick out of when people say a company will get a tax write-off, whether it be from bad debts or losses incurred.
If you incur a $1000 loss, and you are able to write 100% of it off, the only thing that gets you is a reduction in your taxable income by $1000. With a corporate tax rate of 35%, the write-off gets you $350 off of your tax bill. That's it. You still have a $1000 item that needs to be replaced. Only now you will have to spend another $650 to do so instead of $1000.
Plus, your write-off is net of insurance proceeds from the loss... If it is insured for the full cost of replacing it, you don't get to write it off.. But your insurance is likely to cost you more in the future, and if you are Cablevision, guess who pays for that??