Filmmaking
Have you ever dreamed of making a movie, but the costs seemed too big for your budget? Well, there are ways you can follow your dream and deduct your expenses to avoid a dent in your budget.
In a battle with the IRS, a lawyer managed to deduct the annual losses during the six years she spent making a documentary film on the musical group Up With People. Initially, the IRS said the losses were just an indicator that she was making the documentary out of sheer passion, especially since her husband was once a member of that group.
What’s more, during the litigation, the judge in charge of the case stated that documentary filmmaking was, by definition, not for profit. In the end, the court ruling allowed her to deduct the six-figure losses based on the fact that she treated the whole process in a very businesslike manner, employing bookkeepers, having insurance, making the movie more marketable with the help of experts in the field etc.
