Consume Product

That's...not really how assets and write offs work.... You have fractional reserve banking down correctly, except it's actually much worse - the reserve is like 2-3%.

If the shoes are worth $100, then the asset is worth $100 and they sell it at $525. If they get destroyed completely, it's a $100 loss not a $525 loss - so there's no benefit here. Used shoes might be worth 25-50%, so that's a $25-50 depreciation not $262,50. They margin is so high because it's a numbers game - they know large part of their target market will stop paying and good luck repo'ing shoes and even more-so selling used ones after. For every 5 deals they need each of them to pay off an average of $100 and after that is their actual profit.

The proper way to scam large amounts on taxes is with a charitable foundation and art.