Michigan State rebates film can be used tax breaks for private equity investors with § 181

Michigan State rebates film can be used tax breaks for private equity investors with 181

The State of Michigan offers a discount of 40% of new species for the film that makes the program more aggressively in the country. Try a message to hedge funds, private equity groups, fund managers, family offices, tax attorneys, investors, high net worth, tax credit buyers, investors in new markets tax credit, and other international investors on risk minimization Flickr receive a 40% discount on the cost of> Equity.

But with a discount of 40% of investors can also use Section 181-75% to compensate, and in some instances 100% dollar for dollar funding costs of the films, all before the operation, distribution and international sales.

Over the past two years, many institutional investors such as Citigroup, German Bank, JP Morgan, Morgan Stanley, Dresdner Kleinwort, GE Commercial Finance, Abry Partners, AIG Direct Investments, Banc of America Capital Investors haveColumbia Capital, Falcon Investment Advisers and M / C Venture Partners, are involved in financing the film.

Indiviudals including the financing of the film, Larry Ellison, Paul Allen, Steven rales, Fred Smith, CEO of Federal Express, Norman Waitt, co-founder of Gateway computer, Jeff Skoll Ebay, Marc Turtletaub silver shop, Roger Marino from EMC Corp, Sidney Kimmel Jones Apparel Group, Minnesota Twins owner Bill Pohlad, real estate developer Tom Rosenberg, Bob Yari;and financiers Sheikh Waleed Al Ibrahim, Zeid Masri of Silverhaze Partners, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, and Philip Anschutz

American Jobs Creation Act of 2004, the adoption in 2004 of section 181 of the Internal Revenue Code of 1986 ( "Code") marked a turning point unprecedented in American policy toward the phenomenon known as "Runaway Production".

Runaway Production refers to a film or televisionProduction that leaves one state or country to another shot in a purely economic reasons. This movement occurs because producers of the film is usually the place where they can production costs through tax incentives, cheap labor to minimize.

Over the years Canada has had the largest beneficiary of U.S. runaway production (according to some reports, Canada claim the 80% loss in the United States, generating an economic impact of $ 10.3 billion, production in 1998only).

181 is the first time the U. S. Federal Government has an impact through the adoption of tax legislation approved in the fight actively against the theft of movies and television programs.

Article 181 allows 100% depreciation of the cost of certain audio-visual works, regardless of what the media created for television (including theaters, DVD, etc.).

A person or company who invest in eligible productions Article 181 shall be charged at 100uction of their investment against their passive income in the year their investment was made.

The deduction can be made with the active income or the investment must be made by a common company C. The law is in force until 31 Investments in December 2008, therefore, must be before that time and money in qualifying productions must be spent before that date by the productions that will be invested.

But because 181 can also all the expenses for other bonds are usuallyto finance the film, a film to 10 million dollars, of which only 3.5 million shares for the investor $ 3.5 million versus 10 million U.S. dollars, especially if the funding is empty or deductions related mezzanine .

In addition, a further 20% can be generated by profits up 40% in state tax credits or rebates for new investors. And with the State of Michigan, offers a discount of 40% in cash, a film exists, which is the most aggressive of the country. These resultsAn additional $ 4 million in bonuses to investors on the basis of $ 10 million U.S. Movie.

Bite with the current appetite for alternative investments, real estate, hedge funds, top, is the possibility of having an investment guaranteed up to 75-100% before the operation and use something that must be considered and studied, under a new class of assets and portfolios of groups of private equity funds and asset managers and high net worthIndividuals.

http://www.americanequity.equitylinesite.com/2009/12/26/michigan-state-rebates-film-can-be-used-tax-breaks-for-private-equity-investors-with--181/

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