Solved: Film tax credit GA
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
mreyzelman
New Member

Film tax credit GA

Is it possible to file film tax credits in Turbo Tax?  I am trying to file for credits I purchased in the state of GA.  Does anyone know what form to use and if this can be done in Turbo Tax?  

Thanks in advance for helping.
MR
1 Best answer

Accepted Solutions
skirudder3
New Member

Film tax credit GA

The tax credit gets entered into the the step-by-step under Georgia Business and K-1 Credits.  Credit Code 122, company name is the movie company, no certificate #, 100% owner, Federal EIN No and Credit Amount.  You will receive a red error/warning message about K-1s, which you can ignore.  The first time I did this, the credit did not flow through to Part III "Total 2015 credits after all prior year carryforwards and tax liability limitations", but did show up in Part IV 2015 Pass Through Credits.  If not, TurboTax support told me to delete my GA state return and re-add it.  That fixed the problem and the credit flowed through to Form 500.

You will need to include IT-TRANS -- that you should have received when you bought the credits -- with your GA tax return.

On the Federal level you need to treat it as a short-term capital gains.  This eventually shows up on Form 8949 "Sales and other Dispositions of Capital Assets".  Part I (C) Short-term transactions not reported to you on Form 1099-B.  I entered "GA Film Tax Credit Purchase and Sale" arbitrarily as the description.

DISCLAIMER - I am NOT an accountant.  I spent 2 hours -- mostly on hold -- with TurboTax to figure this out and just happened to come across the bit about recording it as capital gains on the internet.

Good luck.

View solution in original post

6 Replies
thebigAD
New Member

Film tax credit GA

Did you ever figure this out?  I want to know where to report use of the credit as payment of state taxes.
skirudder3
New Member

Film tax credit GA

My answer from 2 years ago is probably still valid and copied here ...
The tax credit gets entered into the the step-by-step under Georgia Business and K-1 Credits.  Credit Code 122, company name is the movie company, no certificate #, 100% owner, Federal EIN No and Credit Amount.  You will receive a red error/warning message about K-1s, which you can ignore.  The first time I did this, the credit did not flow through to Part III "Total 2015 credits after all prior year carryforwards and tax liability limitations", but did show up in Part IV 2015 Pass Through Credits.  If not, TurboTax support told me to delete my GA state return and re-add it.  That fixed the problem and the credit flowed through to Form 500.

You will need to include IT-TRANS -- that you should have received when you bought the credits -- with your GA tax return.

On the Federal level you need to treat it as a short-term capital gains.  This eventually shows up on Form 8949 "Sales and other Dispositions of Capital Assets".  Part I (C) Short-term transactions not reported to you on Form 1099-B.  I entered "GA Film Tax Credit Purchase and Sale" arbitrarily as the description.

DISCLAIMER - I am NOT an accountant.  I spent 2 hours -- mostly on hold -- with TurboTax to figure this out and just happened to come across the bit about recording it as capital gains on the internet.

Good luck.
thebigAD
New Member

Film tax credit GA

In case you're interested, I posted my question separately and think I have clarity.  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4328428-where-on-my-1040-do-i-report-the-purchase-and-use-of-a-sta...>

I'll note that in your answer above you don't mention entering the amount of the credit used as taxes paid in your federal return - that is separate from entering the credit on your state return and reporting the gain on your federal return.  That's the question I was asking you the other day.  Anyway, take a look at my linked question/answer.  It may be of help to you.
skirudder3
New Member

Film tax credit GA

The tax credit gets entered into the the step-by-step under Georgia Business and K-1 Credits.  Credit Code 122, company name is the movie company, no certificate #, 100% owner, Federal EIN No and Credit Amount.  You will receive a red error/warning message about K-1s, which you can ignore.  The first time I did this, the credit did not flow through to Part III "Total 2015 credits after all prior year carryforwards and tax liability limitations", but did show up in Part IV 2015 Pass Through Credits.  If not, TurboTax support told me to delete my GA state return and re-add it.  That fixed the problem and the credit flowed through to Form 500.

You will need to include IT-TRANS -- that you should have received when you bought the credits -- with your GA tax return.

On the Federal level you need to treat it as a short-term capital gains.  This eventually shows up on Form 8949 "Sales and other Dispositions of Capital Assets".  Part I (C) Short-term transactions not reported to you on Form 1099-B.  I entered "GA Film Tax Credit Purchase and Sale" arbitrarily as the description.

DISCLAIMER - I am NOT an accountant.  I spent 2 hours -- mostly on hold -- with TurboTax to figure this out and just happened to come across the bit about recording it as capital gains on the internet.

Good luck.

View solution in original post

thebigAD
New Member

Film tax credit GA

skirudder3 - I have a similar question about Georgia Low Income Housing Tax Credits I bought.  Are you still using TurboTax?
sidersjga
Returning Member

Film tax credit GA

skirudder3 Your post has been extremely helpful -- thank you!  Do you recall what date you entered for 'date sold' on your federal return (for short-term transactions not reported on Form 1099-B)?  Perhaps April 15?

Dynamic AdsDynamic Ads
v
Privacy Settings