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Income Tax Act 2007

Deductions - Film industry expenditure

DS 2B: Expenditure when film or film right intended for disposal

You could also call this:

“Deductions for film expenses when planning to sell”

You can get a deduction for money you spend on making a film or buying the rights to a film if you plan to sell it later. This applies when you spend money on film production or buying film rights, and at the time you spend the money, you intend to sell the film or film rights in the future.

The amount you can deduct is worked out using section EA 2. This section deals with other property that generates income.

Even though this rule lets you deduct money that you might normally think of as a capital expense (like buying something to keep long-term), you still need to meet the general rules for deductions. This means the expense must be related to earning income and not be excluded by other tax rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1621348.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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DS 2: Film production expenditure, or

“Rules for claiming deductions on film production costs”

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DS 3: Clawback of deductions for film reimbursement schemes, or

“Repaying tax deductions for film reimbursement schemes when property is sold”

Part D Deductions
Film industry expenditure

DS 2BExpenditure when film or film right intended for disposal

  1. This section applies when—

  2. a person incurs film production expenditure or expenditure in acquiring a film right; and
    1. at the time of incurring the expenditure, the person intends to dispose of the film or film right.

      1. The person is allowed a deduction for the amount of the expenditure allocated under section EA 2 (Other revenue account property).

      2. This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.

      Compare
      Notes
      • Section DB 2B: inserted, on , by section 347 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).