How does it work???ukcanuck wrote:Well how does it work then ?
Why do some corporations run some things at a loss deliberately?
This is really off topic, but the Income Tax Act is quite a complex piece of legislation at over 3,300 pages of (really boring) statute text.
Lots of corporations do things to minimize taxation, which is a legitimate business goal, but there aren't many corporations out there that deliberately lose money. That's kind of not the goal of being in business.
I think what you're thinking of is more like the taxation treatment of equity stakeholders. For instance, if you own a very small percentage of shares in Company X which you sell for a capital loss, you can use that capital loss to offset capital gains in the sale of Company Y's shares. That's a personal taxation thing and you're talking about corporation taxation.
Corporations can and do carry operating losses forward to offset future earnings, though.
Per, prime time pro sports is all about money. Huge money actually. That's why tickets are hundreds of dollars and jerseys or anything else with the team crest costs insane amounts.
I agree that a big part of why somebody buys a sports team is ego and for fun, but owners who buy and run a team for the passion of the game only end up like Arthur Griffiths; broke and without a team. Do you think Jerry Jones and George Steinbrenner bought their teams because they didn't want to make any money? Heck, the guys who run my local WHL team do it for a living and the money. Sure, it's fun too, and they all want to win, but there's a reason the beer ain't free.