Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
U.S. Financial Bailout Brings New Amendment To Section 181 for the Deduction of Film Costs
The new $700 billion U.S. financial bailout bill included some tax zingers to buy off House of Representative votes. One such zinger was an extension and amendment (“the Amendment”) to Internal Revenue Code (IRC) Sec. 181, which now provides a deduction for the first $15 million of the cost of certain films produced in the U.S. This article summarizes Sec. 181, including the impact of the Amendment and the Internal Revenue Service (IRS) Temporary Regulations issued last year.
In summary, Sec. 181 now permits a 100% deduction (“the Film Deduction”) for the first $15 million of the cost (“Film Costs”) of certain audio-visual works (“Qualified Audio-Visual Works”) that commence principal photography in 2008 or 2009. Section 181 originally applied to Qualified Audio-Visual Works that commenced principal photography after Oct. 22, 2004, but before the Amendment, Sec. 181 was all or nothing: if the Film Costs (including residuals and participations) exceeded $15 million, you lost ' you didn't get to deduct the first $15 million. Under the Amendment, you always get to deduct the first $15 million of Film Costs, regardless of how high the budget is. Even better, the Amendment is retroactive to Qualified Audio-Visual Works that commenced principal photography after 2007.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.