Tax Legislation Update for the Entertainment Industry

Friedemann Thomma participated in a panel discussing the most sweeping tax legislation to be enacted in recent history, as it applies to the entertainment industry going forward. The panel provided an overview of the Tax Cuts and Jobs Act, with an emphasis on its application to film and TV talent, production companies, and athletes. The discussion included:

• Qualification for the 20% pass-through deduction on entertainment businesses, including loanout companies and production companies
• Structuring entertainment businesses going forward
• New cost recovery rules applicable to producers and owners of copyrights
• Effect of repealed deductions on athletes and talent who do not use a loanout company
• International tax implications for entertainment businesses with offshore activity