June 16th, 2011
The US Tax Court is currently considering the issue of whether documentary filmmaking constitutes as “for-profit” activity, under the meaning of tax law. If the documentaries not deemed to be for-profit, the film companies can not claim tax deductions for their business expenses. This is a potentially great financial burden for documentary filmmakers.
The issue turns on the purpose of creating documentary films, whether to “educate and expose” or turn a profit.
NY Times covers the story further here.