‘Rust’ Shines Spotlight on Opaque Indie Film Financing SchemeNovember 10, 2021 – Media Mention
Entertainment Partner, Sky Moore, shared insights regarding film financing for smaller, independent films and the Section 181 tax provisions.
For the independent film world, Section 181 “is a hill of beans and doesn’t amount to anything,” says Moore.
“So instead of your investment being $100, you put in $10 and borrow $90. If your rebate on the $100 is $35, it looks like you’re ahead,” he explains. “But it’s all just leverage, just a bunch of debt. [It’s] the same old nonsense that was used [in the U.K.].”
“You can game the system for a while, but if you get audited, you will absolutely get blown apart.”
Read the full article here.