Filmmaking Tax Write Off?

Heero

Heero

Active member
Hey Guys,

I need some information in regards to tax write offs for filmmaking. I've been reading lately that filmmakers can write off expenses for filmmaking, but I never had the full knowledge of this. I want to know if I can go back a few years and write off the camera, lights, food, etc. that was lost to produce film. Is it as easy as just getting your bank statements/receipts from the past and telling your tax preparer to write them off? Thanks!
 
Talk to your accountant. Yes you CAN write off making a movie. It's simply a business expense. Say you make $50K a year, and you spend $10K of your own money.

$5K for equip
$5K for food and payments

The equipment $5K only a piece of it is an expense, since you OWN an item that can be sold again. You DO get depreciation, I think 20%, so there's a $1K savings there. The other $5K is fully gone, since you don't have a tangable item. So now instead of saying you have $50K, you claim $44K.

You need to talk with an accountaint to make sure though.
 
Gotcha. However, back in July 2006 I did not have a business license at the time. Is it still possible to apply for a business license today and write off the expense years ago? Thanks.
 
I don't think you can write off items that you bought 2 years ago. You can only write off items that were purchased under the business, i.e. the business license.
 
Additionally some states have tax incentives. In Illinois, our -current- Govenor just passed a new law, it's for making commercials over $50,000 or films. There are rules and you have paperwork to fill out, talk to your states film commision to find out the details.

http://www.illinoisbiz.biz/dceo/Bureaus/Film/
 
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If you did not do personal taxes for 2006, you can still do it. You can add it into your personal taxes. I think you can go back 2 years. Your accountant can tell you all about it.
 
Whatever is spent on a production let's say for your reel is totally tax deductible, I mean if I spent $10K on a short I deduct $10K from my earnings, end of story.

Equipment expenses are more complicated, they usually are depreciated over 3 to 5 years, and that's up to the accountant usually to know that.
 
If you have no earnings from your films, there are limits to how much you can write off. You can't just write off the costs of your hobby.

You need to consult with a qualified tax professional.
 
Talking with a tax pro that knows the law is a must. Uncle Sam is not as forgiving with his money as an Investor may be. :huh:
 
Jim2000 said:
If you have no earnings from your films, there are limits to how much you can write off. You can't just write off the costs of your hobby.

You need to consult with a qualified tax professional.
Click to expand...

Well, this is true, but I was referring to those people who are actually in the film industry. Then you can. If it's a hobby, that's not the same thing, because it essentially means you have no realistic expectation of making money off this pursuit. But I own an S-Corporation incorporated in the state of California for the purpose of film production, so as long as I'm able to show profits related to that something like 2 years out of 5 or whatever it is, then I can deduct expenses and losses. It's different for individuals probably.

You really have to consult a professional about these issues to understand them best, though.
 
Work related expenses are legit write offs.
For me, that's everything. Gas, percentage of the house and cars, a percentage of the food, even custom parts I put on my car. All documented. All used in the show.
My cable bill is considered research. My phone is required for business.
I can think of little I buy that is not related to work.
all this said, let your tax dude handle this. Do not take the advice of idiots on the internet like me.
 
grinner said:
even custom parts I put on my car. All documented. All used in the show.
Click to expand...

I think you're onto something, Grinner. I plan to go into production immediately on my new show about my desire to purchase a BMW Motorcycle and a Mustang Convertable.
:)
 
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