Section 181 property affected by Tax Cuts and Jobs Act

The "Tax Cuts and Jobs Act" (H.R. 1) (the Act) made significant changes to bonus depreciation, which affects Section 181 property (e.g., certain televisions programs, films and live theatrical productions).

Section 181 previously permitted companies to immediately deduct costs incurred for films, television programs and live theatrical productions that had at least 75% of certain compensation costs incurred in the United States. Taxpayers should evaluate the changes to the bonus depreciation provisions as they impact Section 181 property and model the effect of the provisions to enable timely planning.

US Tax payers may very well have substantial tax incentives available to them through investing in certain television programs, films and live theatrical productions. You should confirm how this may effect you through your own CPA .