For those of you who don't know, Section 181 is a more recent tax code that was recently extended through 2025 that allows investors to deduct the entire cost of a film in the year it was produced, instead of deducting those expenses once the film is finished, specifically in the year the film is released. There is some question as to whether this is a risky move, and potentially opens investors up to an audit. Do any producers/investors, etc here have experience using Section 181 to deduct their film expenses, and what are your thoughts? Thanks in advance to everyone for your help!
Financing / Crowdfunding : Anyone have experience with Section 181 by Samuel W. Reed
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Great information Samuel W. Reed! Thanks for sharing and I’m sure you’ll get a lot of feedback.
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Samuel W. Reed I am using that in connection with my Eartha Kitt film and Sin 13, which we are in process of fundraising for now.
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Is this state wide in USA? Can non Americans apply for it if they film within the USA? It’s a great incentive? So do you need an American accountant, Americanaddress and bank account?
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I’m attaching 2 links about Section 181:
1. DGA (Director’s Guild of America) http://www.dga.org/~/media/files/initiatives/dgaiftasection181brochure.ashx
2. Cornell Law School https://www.law.cornell.edu/uscode/text/26/181
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Jane Sanger This is not any kind of grant, but is part of the US Tax laws, so applies to anyone who files US taxes whose business and project qualifies.
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As above, this is a controversial aspect of the US tax code currently as revised and updated. Recent changes and advice from attorneys has been that as currently written the code it can be overstated as an advantage to indie film finance investors. Consult a tax / entertainment attorney, as always. Posted as above. https://www.forbes.com/sites/schuylermoore/2022/01/19/the-ugly-truth-abo...