At the end of 2015, Congress passed, as part of a large tax extender bill, the Protecting Americans from Tax Hikes Act (PATH), an extension of Section 181 of the Internal Revenue Code. Section 181 has been available since 2004 to permit expedited deduction of the costs of a film or TV production. The present version of Section 181 permits an expedited deduction of a production’s costs up to $15 million ($20 million in certain circumstances). Since inception, this has had several sunset provisions, each of which was extended as part of year-end extender bills. The latest for the first time has extended the availability of Section 181 treatment to live stage productions.
This article, which appeared in a recent issue of Entertainment Law & Finance newsletter (an ALM publication), discusses whether this new provision will be helpful to producers of live theatrical productions as they seek to raise funding for their shows. It was co-written by Thomas D. Selz and Bernard C. Topper, Jr., of New York City law firm Frankfurt Kurnit Klein & Selz PC, and Christopher A. Cacace, Partner-in-Charge, Theater, Media and Entertainment Group, Marks Paneth LLP.
Click here to read the full article.
Marks Paneth LLP has been ranked among the top three providers of forensic accounting services in the New York metropolitan area by readers of the New York Law Journal (NYLJ). Marks Paneth is the only firm to be voted among the top three in this category for all six years since the NYLJ’s 2010 inaugural survey.
2016 Tax Deadline Calendar
We've developed a useful summary of various tax deadlines occurring in calendar year 2016. Please review and let us know if you have any questions or, if you have missed a deadline, whether you would like to discuss late filing procedures and options.