Section 181

181 a 1 in general a taxpayer may elect to treat the cost of any qualified film or television production and any qualified live theatrical production as an expense which is not chargeable to capital account.

Section 181. A in general there is a joint requirements oversight council in the department of defense. Any cost so treated shall be allowed as a deduction. The amendments made by this section enacting this section shall apply to qualified film and television productions as defined in section 181 d 1 of the internal revenue code of 1986 as added by this section commencing after the date of the enactment of this act oct.

The new section 181 film tax deduction is different in a couple of ways that make it even better for investors and producers. Write off the entire cost of the production in the year in which the money is actually spent. On december 18 2019 the house passed tax legislation as part of an omnibus package that included among other things extending internal revenue code section 181 section 181 retroactively from 2018 through 2020 which ultimately means that taxpayers may be able to elect section 181 treatment for the 2019 and 2020 tax years.

181 a election to treat costs as expenses i r c.