Flint
Novice
- Joined
- Sep 17, 2016
- Messages
- 24
Don't they have to sell like 30-50k copies at full price to break even? Not likely to happen.They gambled. It's not clear whether they lost the bet or not
Don't they have to sell like 30-50k copies at full price to break even? Not likely to happen.They gambled. It's not clear whether they lost the bet or not
“Would it be legal to direct my income into an account not owned by myself, and deposit it when purchasing, so I can avoid income tax?”
As baldly phrased as that, no, it would be illegal.
But in practice, many people do something similar. TLDR; Corporations pay taxes on net income after expenses, not on gross revenues.
Many lawyers and other consulting professionals have personal corporations. You don’t pay the lawyer; you pay her corporation. They then deduct all of their law practice related expenses - office, utilities, certified mail, office equipment, and so on - from the income before paying tax on the net income.
They rarely avoid all income tax, but they pay much less than you might expect solely based on their income.
Another example is owning rental property - if people had to pay taxes strictly on rents, the taxes would bankrupt them. Instead, they subtract all of their expenses first - mortgage payments, property tax, upkeep, and so on - then pay taxes on the net income.
I partially financed development of a computer game on Kickstarter. At my accountant’s advice, I created an S Corporation to develop the game. In the five years it has taken to develop the game, I haven’t paid any taxes on contributions to it. Next year, when we do the taxes for this year, all of our development costs (paying contractors, lawyers, tools providers, etc.) will be subtracted from the initial donations and first year sales of the game. If we come out ahead, we’ll pay tax; if it’s break-even or worse, we won’t. I’m not sure myself if we’ll be able to carry over some expenses to next year. If not, we’ll pay full taxes on the game’s income minus current expenses (marketing, porting to other platforms, and so on).
I dont really think it was a gamble, youd have to be retarded to think this would sell.They gambled. It's not clear whether they lost the bet or not, but Corey has written a lot on Quora about the thrills of gambling and why successful people do it even when the odds are long.
Going near $40 is tricky because that's where you start competing with bigger titles that have far more marketing and/or appeal. Hero-U is a tough sell because at first glance someone might not have a good idea of what the game actually is. The art and character portraits might give a false impression to a passerby that it is a "casual" game. Some reviews and descriptions make Hero-U sound more like a time management sim than an adventure/RPG.
For people who played Hero-U, do you think they made the game too big or long? Would the concept and gameplay still have been effective if it was a 10-12 hour experience? It sounds like Hero-U was quite a passion project for the Coles, and they succeeded in achieving their vision, but maybe they would have been better off reducing the scope or size of the game so they wouldn't have to bet the farm on it.
They gambled. It's not clear whether they lost the bet or not, but Corey has written a lot on Quora about the thrills of gambling and why successful people do it even when the odds are long.
The roguelike genre has become a pure concept that’s gone in a completely different direction, including things like permadeath that we don’t believe in
This wasnt a gamble, this either was a product of pure stupidity or they knew it wouldnt make enough to cover the food expenses but decided it didnt matter.
How dare you criticize an adventure game? You must be some kind of an asshole.
Don't bother. No one's buying any of this shit anyway, so let the Codex adventure game Gestapo have their delusions in peace.
From what I can tell(admittedly not much, as this is not a talent I share), Corey also really understands how to move money around, which is perhaps the most important skill a budgeting manager can possess.
The two things are not mutually exclusive. Still, I don't buy the "completely delusional."They gambled. It's not clear whether they lost the bet or not, but Corey has written a lot on Quora about the thrills of gambling and why successful people do it even when the odds are long.
No. They did not gamble. They were completely delusional.
It's more complicated than that because it sounds like they have lived tax-free during the development process.
The two things are not mutually exclusive. Still, I don't buy the "completely delusional.
A belief or altered reality that is persistently held despite evidence or agreement to the contrary, generally in reference to a mental disorder.
I'm not an accountant, but my understanding of what Corey described was:It's more complicated than that because it sounds like they have lived tax-free during the development process.
I’m an accountant. The reason they have paid zero taxes is clearly because they have made zero taxable income. I know not everyone here is a business school grad, but not making income now or in the future is not a good business plan. Shocking, I know.
Again, it all depends on whether the Coles are rich or not. If the $400k is a major chunk of their savings, and if they are not going to make it back, then obviously it was not a great strategy. But Corey's Quora posts don't read like those of someone who is living hand-to-mouth. His father was a millionaire in 1960s dollars and he grew up in Abington, PA, apparently "one of the wealthiest areas in the wealthiest county in PA." He started life with a trust fund and spent years as a famed impresario at one of the most successful video game companies of the era. He's also made a lot of money running online poker sites.Even assuming the Coles have no idea this thread exists, you do them no favors pretending everything is A-OK. Are there other Kickstarter projects that have struggled? Sure. Copper Dreams is in the middle of still figuring out what art direction it wants. But this thing is on a whole other level. People ITT should at least be honest about it. IMO anyhow.
Again, it all depends on whether the Coles are rich or not
I'm not an accountant, but my understanding of what Corey described was:
(1) Take out $X HELOC.
(2) Pay cost-of-living expenses out of $X. Treat salary as a business expense that nets to zero.
(3) Deduct interest on HELOC from other income.
(4) Pay no taxes on sales of Hero-U until revenue exceeds $X (or possibly $X + interest).
https://www.quora.com/Would-it-be-l...-it-when-purchasing-so-I-can-avoid-income-taxI'm not an accountant, but my understanding of what Corey described was:
(1) Take out $X HELOC.
(2) Pay cost-of-living expenses out of $X. Treat salary as a business expense that nets to zero.
(3) Deduct interest on HELOC from other income.
(4) Pay no taxes on sales of Hero-U until revenue exceeds $X (or possibly $X + interest).
You’re still paying interest. Albeit likely low rates if they took it out a few years ago. Also, why are they even takijg out a loan? If you’re rich you just spend your own money and deduct it as a business expense. It’s even cheaper than taking out a loan and payng interest.
EDIT: I’m not a tax weirdo, but pretty sure you can only deduct the interet
Off the HELOC. Maybe someone can provide citation on #2 of what MRY is talking about.