October 15th, 2010, 11:12 AM
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#1
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Major Player
Join Date: Jun 2003
Location: Crested Butte, CO
Posts: 576
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US IRS "Safe Harbor for Creative Property Costs"
I just came across this on the IRS website and wondered if anyone here has employed this in their accounting...
Safe Harbor for Creative Property Costs
If you are engaged in the trade or business of film production, you may be able to amortize the creative property costs for properties not set for production within 3 years of the first capitalized transaction. You may amortize these costs ratably over a 15-year period beginning on the first day of the second half of the tax year in which you properly write off the costs for financial accounting purposes. If, during the 15-year period, you dispose of the creative property rights, you must continue to amortize the costs over the remainder of the 15-year period.
Creative property costs include costs paid or incurred to acquire and develop screenplays, scripts, story outlines, motion picture production rights to books and plays, and other similar properties for purposes of potential future film development, production, and exploitation.
Amortize these costs using the rules of Revenue Procedure 2004-36. For more information, see Revenue Procedure 2004-36, 2004-24 I.R.B. 1063, available at
Internal Revenue Bulletin - June 14, 2004 - Rev. Proc. 2004-36.
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