Section 181 also allows for all other recourse debt costs which are usually associated with film finance, a million dollar film, where only .5 million is equity, an investor can deduct .5 million dollars against the million, especially if the latter is mezzanine or gap finance.
A qualified film or television production may be a motion picture (whether released to theatres or directly to video, cassette or any other format), a miniseries, a scripted, dramatic television episode, or a movie of the week. In the case of a television series, only the first 44 episodes may qualify. Sexually explicit productions are excluded.
To qualify for the deduction, 75 percent of the total compensation of the production must be “qualified compensation”, meaning compensation for services performed in the United States by actors, directors, producers, and