Tax write offs?

Azmyth

Azmyth

Veteran
With it getting time for tax season. I was just curious, as an indie film maker are you able to write off anything that was spent on a production such as food? equipment? that was necessary to complete the project? What if your self distributing? or Have just now gotten picked up by a distributor but the paperwork is not final yet?

I have all the receipts for everything I spent during the production and was just curious how much of that might be able to be written off on my taxes. I've never had non W2 income.. so i'm sort of lost.
 
You might contact an accountant where you are located.
If this is a business then many things are deductible, if it is a hobby then nope!
 
Although I'm not a CPA, I've had only non W2 income most of my life. When we shot a feature last year we wrote off all applicable expenses , just as with any other business. You must have receipts and the expense needs to be strictly related to the venture, or prorated if it is part business part personal. Equipment purchases have to be amortized over a longer period, but rentals can be expensed directly. In order for it to be considered a business rather than a hobby, you have to treat it like a business. Income gets deposited in a commercial bank account, expenses are best paid by business check when possible, your production company is licensed, etc. So the short answer is yes, if it's a directly related legitimate expense, you can write it off if you can document it.
 
Yes, my understanding is the BUSINESS must have income and you can deduct it from that. You can't deduct a business expense from your personal income.
 
So if this was entirely self funded, your saying I can't deduct expenses if I'm treating it as a business venture?

I'm making income from it (albeit not a whole lot yet) but the expenses far exceed that.
 
i file as a sole proprietor. i don't have a separate business account. my accountants have always deducted any expenses related to work.

there are special rules for things like food for yourself, entertainment and travel, etc. turbotax will usually guide you through it as well....

but i'm a hired gun, not a producer, and this is my day job. there's no question but that my work (and related expenses) is work. if your income isn't 1099, you should consult an accountant.
 
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The important message is not to listen to any advice here EXCEPT to find yourself a tax guy. Get some recommendations from people you know to find someone who's familiar with the kind of work you do and how best to optimize your deductions.
 
I have always done my own taxes using TurboTax and schedule C for business expenses / income. My business is small and I maintain a DVD inventory. I deduct supplies, mileage, postage, meals when on the road, advertising, manufacturing cost of inventory, equipment repairs, cell phone use costs, purchase of new equipment in previous years when IRS allowed full deduction in year of purchase for computers and software. I do not deduct the red flag item which is a home office nor do I depreciate equipment. Since my business is a simple one I am knowledgeable of the relevant IRS regulations. One of the important aspects of doing this is maintaining very detailed records, including all receipts. Every expense is documented. If it became more complicated I would have to use a tax guy.
 
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