movie investment

Forum|Forum|1 year ago
April 2, 2025
1 reply
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We created an LLC to make a low budget movie. We have several investors and we invested in the movie ourselves. The movie had the misfortune of coming out during COVID. It seems now that we will take a loss.

Each year we issued K-1s to the investors as revenue came in, but now it appears that the movie will end up losing money. It is now a long term capital loss. Can our loss be written against capital gains? And is this any different from any other loss on an investment?

Not A Product Question

Mike9241

see a tax pro. if you can't market the film, you may be entitled to write off as an ordinary expense those capital costs under IRC 181 or some other code section. Not saying you can only that it's to your benefit to see if this can be done