Deducting investment of film

[edgarespina]

Does anyone know what form I need to submit to do this?  I've read so many different things on here - I invested cash in the production of a feature film and I read that it I can deduct 100% of this expense.

[JohnW152]

These are section 181 film production expenses that would be reported as business expenses on Schedule C of your return.

To do this in TurboTax, open your return and:

1. Enter schedule c in the Search box at the top right side of TurboTax.
2. Then click jump to schedule c. 

This will take you directly to the start of this section where you can set up your business and enter your income & expenses.

Please see Film Production Costs (Section 181) for more information.

[edgarespina]

Ok thank you - will this end up being a deduction of my income?

[edgarespina]

@JohnW152 thank you!  Is it required that I also do the statement of election that goes on the Miscellaneous Statement?

[Mike9241]

were you in a partnership with regard to the film production? then you should be receiving a k-1. which would report the deductible expenses.

[ColeenD3 · Accepted solution]

Yes, per the information in the post from NataliaP. You would need the desktop version Home and Business to have forms mode.

Yes, you can deduct the investments as an expense under the section 181.

The  Section 181 is available to productions of qualified, television, films, and theater productions with more than 75 percent of costs within the United States.  It is extended through the 2020 tax year.  You should attach a statement to the return  stating that you're making an election under section 181.

There is nowhere in the to input in TurboTax the deduction nor is there a standard election form contained in the program. 

Rather, you would add a Miscellaneous Statement or Additional Information sheet in Forms Mode.

[edgarespina]

@ColeenD3 thank you.  I had another CPA tell me I had to fill out form 4562 so I was very confused.

[edgarespina]

@ColeenD3 thank you again - just to make sure I enter this expense in Schedule C?

[ColeenD3]

Yes, enter it in Schedule C.