OUCH! MS has to write off >$6bn in Q4 to post a Q4 loss

[M.U.G.E.N]

Train wreck said:

kowenicki said:

Train wreck said:
Im trying to find in the report from microsoft and through media reports the tax savings and i dont see anything. I guess its people blowing more hot air.

it isnt a reason to do it, its a consequence... so no, it isnt hot air, it is just patently obvious to anyone with any knowledge whatsoever.

Its a non cash charge aganist this quarters earnings, there is no tax implications anywhere, so no its not patently obvious.  To me, its people who dont know what they are talking about (as usual)

Writeoffs can be used as itemized deductions in filing for income taxes at the end of the year. This much I can assure you, at least it is the case under US GAAP. 

Kowen is trying to sugercoat the outcome a bit :P but he is not wrong on that matter. How big of an impact it has on the taxes remains to be seen as I explained above (taking tax brackets into consideration) but overall this is not a good outcome.