Free Money For Investing In Film Projects
Did you know you can immediately deduct the cost of Qualified Film Productions? When coupled with the available state film production incentives, initial returns of 50-70% on your investment can be attained in the first year.
Section 181
Previously, some costs of film production were recoverable through depreciation deductions spread over a period of years. However, the 2004 Tax Act added a new Section 181 to the Internal Revenue Code that allows a current deduction for the cost of “qualified film or television productions” in the year of the expenditure.
For any qualified film or television production that commences before January 1, 2010, a taxpayer may elect to deduct expenses in an amount not to exceed an aggregate cost of ,000,000. The limitation is increased to ,000,000 if a significant amount of the production