WIOD Off the Isle

[davideduardo]

How much of this cost if any can be written off for a number of years? I remember a broadcast executive bragging to me that the new studios they had just put in virtually cost the company nothing because they could write it off!

Every business expense is a "cost". Taxes are, of course, paid on the difference between the cost of doing business and income.

Capital expenses such as buildings, transmitters, remodeling, towers and even vehicles can't be expensed all in the year of acquisition but have to be amortized over the lifespan of the items. A portion of the cost is expensed each year, over the projected life of the item.

But all business expenses are "written off" and, as such, reduce the profit.

 

[Ryan Williams]

How much of this cost if any can be written off for a number of years? I remember a broadcast executive bragging to me that the new studios they had just put in virtually cost the company nothing because they could write it off!

 

[WDAE-FM101]

Generally Accepted Accounting principles require that a capital asset be depreciated over its "useful" life. Most businesses attempt to use the shortest defensible time period in order to increase the amount that may be written off each year (there are complicated calculations including internal rate of return, capital asset pricing models etc. that come into play - that's where your CPA earns his money.) Depreciation is a non-cash expense that reduces taxable income; but as they say "you can't get rich giving to the Red Cross" It still comes down to having sufficient cash flow from operations to cover staff and operating expenses and to generate the capital required to make these major capital purchases.

 

[Rusty Muck]

When I lived in the area, I don't think the radio station had a separate vehicle entrance. The TV station and the radio station were behind gated security. Recent Google Earth street view shows the gate is not present but the guard building is there. The adjacent parking lot is fenced (from a quick look with street view). I surmise gated security became less of a priority if the late owner Ed Ansin spent increasingly more time in Boston, and as public became accustomed to engaging and stimulating programming of Channel 7 and WIOD.

When channel 7 and AM 610 were split up as a result of inside advantages that a prior FCC commissioner roster had gave to the Cox-Knight-Trammel partnership, Cox d/b/a Miami Valley Broadcasting and Sunbeam split the land evenly… but not quite. Cox still owned the driveway entrance, if you work for 7, you have to drive on it.

Thus there always had been a gentleman’s agreement between Sunbeam and Cox to have a security guard station. And from what I’ve ascertained, Sunbeam didn’t want the guard box removed when the strip club developer did so.

The radio station land (now owned by Sunbeam along with the adjacent lot to the right) is shaded in light blue, the channel 7 land is to the left.



If I were a betting fellow, I’d say that I expect Sunbeam to build a replacement studio/offices for WSVN on the opposite side of the isle, a task made easier without those two towers. WSVN needs parking more than anything and a more reasonable entrance to the whole place, and the channel 7 building externally has been largely unchanged since it was built in 1956.

 

[strangelove]

If I were a betting fellow, I’d say that I expect Sunbeam to build a replacement studio/offices for WSVN on the opposite side of the isle, a task made easier without those two towers. WSVN needs parking more than anything and a more reasonable entrance to the whole place, and the channel 7 building externally has been largely unchanged since it was built in 1956.

I'm just glad they're not looking to give up that location.