Movie investment

[osudb98]

Do you know if a movie investment as a producer is taxed as income or capital gains? This is strictly an investment of cash without any work being done? Thank you

[Anonymous]

how can you be a producer and not perform any work?

[Carl]

Sounds to me like you need to talk to a CPA yesterday, if not sooner. Generally, some type of corporation is established "BEFORE' accepting any type of investment income for your type of "activity". I put that in quotes, because the fact is, you don't yet have any activity. Generally, an S-Corp is formed and all investment income from others, as well as from the business owner is income to the S-Corp one way or another. I can go on and on, but I'd end up writing a novel. You ***NEED*** to talk with a CPA and do so ASAP this close to the end of the tax year. This is doubly important if your state also taxes personal income.

If you can't do this, then you need to return all investment income to the investors before the end of the 2019 tax year and explain to them you will take their investments once you have the proper legal processes for that, in place.

[Anonymous]

if you are setting up a "business" to produce a movie and have other investors, your next stop should be a security's lawyer.     many states have laws and regulations concerning the formation and investment by strangers in certain projects.  this could include allowing in only investors with a minimum net worth, providing them with a prospectus which would include forecasts and tax opinions.   

obviously this would not apply to  if you are the only investor.    

however,  I'm not really sure what is going on or what your intention is