Shane Nix authored “Entertaining Taxes” in Los Angeles Lawyer’s May 2019 edition, the 35th Annual Entertainment Law Issue. The following is an excerpt:
Two of the stated goals of the 2017 Tax Cuts and Jobs Act were to simplify tax reporting and cut taxes for businesses and individuals alike. The result, however, was more complex rules, a wide array of uncertainty, and in some cases, higher overall taxes. While the new tax rules provide substantial tax benefits for many businesses, including within the entertainment industry, the entertainment industry often does not fare as well under this act. This includes application of the new deduction of up to 20 percent of certain qualified business income for taxpayers other than C-corporations and excludes certain service businesses, including service businesses within the field of performing arts. Moreover, while the entertainment industry benefits from more generous bonus depreciation rules under the act, the new laws also create timing issues that, with other provisions of the act, may undermine such benefits.