Many people assumed the Film Tax Deductions that expired back in 2016 may never return, but, the new Section 181 Tax Deduction was passed as part of the Tax Cut sand Jobs Act of 2018, which is great news for anyone looking for private investor financing for a feature film, television series or a live stage production.
Since the purpose of the old Section 181 Tax Deductions was to create tax incentive for investors involved in entertainment productions made in the United States, likewise, the new version creates 100% deduction for any money invested in a film,television series or stage production that is produced in the US, and qualifies under the original qualification standards of Section 181.
This means, for every $1.00 invested in a film or a television series, the investor can write-off 37 cents from their tax return. Like the original, the new Section 181 Tax Deductions can be taken when a producer sets up a qualifying securities offering, in which the private placement memorandum (PPM) and other provisions of the securities offering have been drafted by a recognized entertainment lawyer in Los Angeles, San Francisco and New York, like ourselves, to incorporate the new depreciation rules found in the 2018 version of Section 181 Tax Deductions of TCJA.
Investors that are subject to United States federal income tax can benefit from the new Section 181 Tax Deduction under the Tax Cuts and Jobs Act 2018.
Film and Television 