Section 181, claiming indie film expenses on your taxes

[Guest Christopher Sheneman]

So, let me understand this, according to Section 181 of the current 2013 tax code I can claim 100% of the motion picture costs (under 15M) in the same year of investment.

 

So if I spend $30,000 on my own project this year I can deduct that amount on my taxes- sweet! Right? Right?

[Guest]

And you wouldn't ask an accountant becuuuuuuuuuuuuuuuse?

 

Seems like the IRS is being particularly generous since you have a hard asset on the books.

 

R,

[Guest Christopher Sheneman]

That's good advice, Richard. But I was hoping you or someone else could do that for me since this is the internet.

[Guest]

And the internet is the source of all free and accurate knowledge?

 

I would trust the opinion of a fellow film industry person on taxes about as far as I could throw it.

 

I should add that my accountant has a great eye, I have him on set all the time getting his advice on exposure, composition, and lighting.

 

R,

[Guest Christopher Sheneman]

We'll, I haven't yet spoke with an accountant just yet but I have done some googling and LOCATED actual IRS website information.

http://www.irs.gov/irb/2011-47_IRB/ar09.html

 

[Guest Christopher Sheneman]

Interesting enough, if you happen to purchase materials that powder the noses of starlets aka "party favors", you can deduct that!

[Guest]

We'll, I haven't yet spoke with an accountant just yet but I have done some googling and LOCATED actual IRS website information.

http://www.irs.gov/irb/2011-47_IRB/ar09.html

 

There you go, way better source of info than a camera loader or DOP!

 

What is this supposed to mean? "These temporary regulations apply to qualified film and television productions...."

 

Temporary? Interesting.

 

R,