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Loophole

Film Financing §181 Deduction

100% year-1 deduction on qualifying US film / TV productions.

Overview

§181 (extended through 2025) permits 100% first-year deduction of qualifying US film, TV, and live theatrical production costs up to $15M ($20M in low-income areas). Investors get an ordinary deduction against active income — used aggressively by high-W-2 earners in entertainment-adjacent industries. Real production risk; vet fund managers hard.

Best fit
High W-2 earners ($500K+)Entertainment industry adjacentOrdinary-income shelter seekers
Estimated impact
Shelter $100K–$1M+ of ordinary income year 1

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