Section 181 Deduction | 2chientertainment

Section 181 Deductions

100% of the motion picture costs are deductible in the same year of investment.
75% of the motion picture must be shot in the US to qualify for Section 181
There is a $15 to $20 million dollar budget cap.
There is no minimum film production budget cost.
TV pilots, TV episodes (up to 44), short films, music videos and feature films all qualify for Section 181.
Section 181 can be applied to active income or passive income.
Investors can be either individuals or businesses.
Section 181 is retroactive to 2004 and was just renewed as part of the ‘Fiscal Cliff’ Bill on early 2013.
There is no expectation for film distribution or film completion.
The motion picture’s corporation issues Schedule K-1’s to the investors so they can take advantage of Section 181.