I invested in a Broadway production; the show will be opening the summer of 2023. Per US Section 181, I believe I can take this deduction for the "taxable year in which costs of the production are first occurred." I have read that as I get paid back on my investment, I will have to declare capital gains for each distribution.
However, Forbes wrote an article (The Ugly Truth About Section 181) saying you can only take the deduction against a narrow real estate income category. 181. https://www.forbes.com/sites/schuylermoore/2022/01/19/the-[product key removed]-section-181/?sh=31cd....
Does anyone know the answer to this? To be clear, I am a MINOR investor - not a named producer.
I've also read Section 168 is relevant as well. I'm soooo confused.
