Never Split Tens - Revision history

Drlesmgolden at 13:14, 29 October 2017

2017-10-29T13:14:09Z

Drlesmgolden at 11:57, 9 August 2017

2017-08-09T11:57:07Z

Drlesmgolden at 18:27, 18 June 2013

2013-06-18T18:27:13Z

Drlesmgolden: /* Summary */

2013-06-18T01:24:33Z

Summary

Drlesmgolden: /* Production and Compliance */

2013-06-18T01:21:11Z

Production and Compliance

Drlesmgolden: /* Illinois Tax Credit */

2013-06-17T23:50:23Z

Illinois Tax Credit

Drlesmgolden at 20:57, 14 June 2013

2013-06-14T20:57:33Z

Drlesmgolden at 14:13, 14 June 2013

2013-06-14T14:13:56Z

Drlesmgolden: /* Why Isn’t Everyone Doing This? */

2013-06-04T16:47:48Z

Why Isn’t Everyone Doing This?

Drlesmgolden at 12:46, 4 June 2013

2013-06-04T12:46:40Z

← Older revision		Revision as of 13:14, 29 October 2017
Line 1:		Line 1:
	<b>Never Split Tens</b> is a major motion picture based on the life of the mathematician who developed the card counting technique for the casino game of blackjack. Its production budget will be raised by loans taking advantage of Illinois income tax credits and federal income tax deductions.		<b>Never Split Tens</b> is a major motion picture based on the life of the mathematician who developed the card counting technique for the casino game of blackjack. Its production budget will be raised by loans taking advantage of Illinois income tax credits and federal income tax deductions.
		+
		+	[[File: NeverSplitTensCover.JPG\|thumb\|right\|250px\|<small>The cover of the book "Never Split Tens," a biographical novel by Les Golden of Oak Park, Illinois, based on the incredible true story of blackjack scholar Edward O. Thorp. The book contains a comparison of blackjack systems, an acting primer into camouflaging being a card counter, and an extensive biography of Hi-Lo developer Harvey Dubner. </small>]]

	==The Motion Picture==		==The Motion Picture==

← Older revision		Revision as of 11:57, 9 August 2017
Line 144:		Line 144:

	The producer, with their attorney, would be happy to discuss this proposal further with accountant firms and their counsel or loaning entities and their counsel at their convenience. A representative of the Illinois Film Office would be happy to attend.		The producer, with their attorney, would be happy to discuss this proposal further with accountant firms and their counsel or loaning entities and their counsel at their convenience. A representative of the Illinois Film Office would be happy to attend.
		+
		+	==Other Production Information==
		+
		+	General information about Never Split Tens is provided at
		+	mywikibiz.com/Never_Split_Tens_(movie)
		+
		+	The full prospectus for Never Split Tens appears at
		+	mywikibiz.com/Never_Split_Tens_(movie_prospectus)

	==Contact==		==Contact==

@@ Line 34: / Line 34: @@
 ==Funding for Never Split Tens==
 ===Proposal===
-The producers request a $290,000 loan for up to eight months from those with large state and federal tax liabilities to whom you provide professional accounting and investment advice.  The collateral items are related to:
+The producers request loans totaling $290,000 for up to eight months from those with large state and federal tax liabilities to whom you provide professional accounting and investment advice, or from private individuals or firms.  The loan is based on Illinois and federal statute and is free of risk.
 a) Illinois tax credits based on 35 ILCS 16/, and </br>

@@ Line 141: / Line 141: @@
 The producers’ entertainment lawyer has drafted a complete prospectus if you wish to receive a copy.  This highlights the risks of investment in film production, but as noted the state and federal tax benefits of the loan are independent of whether or not the film makes a profit.  The prospectus would provide information on the potential profitability of the motion picture.
-The producer, with their attorney, would be happy to discuss this proposal further with accountant firms and their counsel at their convenience.  A representative of the Illinois Film Office would be happy to attend.
+The producer, with their attorney, would be happy to discuss this proposal further with accountant firms and their counsel or loaning entities and their counsel at their convenience.  A representative of the Illinois Film Office would be happy to attend.
 ==Contact==

@@ Line 126: / Line 126: @@
 e.  During the actual filming, the coordinating producer, working with the production company accountant, provides a daily accounting of the expenses related to these residents, firms, and vendors,
-f.  That accounting is provided to the accountant firm daily.
+f.  That accounting is provided to the accountant firm or loaning entities daily.
 ==Summary==

@@ Line 85: / Line 85: @@
 The producers therefore wish to approach those with large Illinois tax liabilities.  Either corporations doing business in Illinois or attorneys in large firms are appropriate fits.  Some of these have large incomes, large tax liabilities, and are associated with a significantly large number of partners.  The appropriate manner by which to approach these groups is through their advising accountants.
-In the above example, the producers budget spending $100,000 in Illinois.  The loaning entity or individuals provide a loan of $290,000.  After six to eight months, Illinois provides our production company the $300,000 tax credit which is then transferred to the loaning entity or individuals.  With that $10,000 paid back in interest, the earnings on the loan is $10,000/$290,000 x 100 = 3.4% for eight months, equivalent to 5.2% interest annualized.  (Note:  The full payment comes from the Illinois tax credit, not the production company, and therefore the "interest" is not income.)
+In the above example, the producers budget spending $1 million in Illinois.  The loaning entity or individuals provide a loan of $290,000.  After six to eight months, Illinois provides our production company the $300,000 tax credit which is then transferred to the loaning entity or individuals.  With that $10,000 paid back in interest, the earnings on the loan is $10,000/$290,000 x 100 = 3.4% for eight months, equivalent to 5.2% interest annualized.  (Note:  The full payment comes from the Illinois tax credit, not the production company, and therefore the "interest" is not income.)
 ===Federal Deduction===

@@ Line 95: / Line 95: @@
 In this example, ten individuals provide the loan based on their relative gross incomes.  The results for their considerations based on both the Illinois tax credit and the federal deduction are provided in the table.  The individuals are assumed to be in the 35% federal tax bracket.  The annualized return resulting from the total of the Illinois tax credit and the federal deduction is 58%.
-NOTE:  If the following Table is not visible in your browser, go directly to the Table here:</br>[[Media:Taxincentives.jpg]]
+NOTE:  If the following Table is not visible in your browser, go directly to the Table here:</br>[[Media:TaxIncentives.jpg]]
-[[File: Taxincentives.jpg|thumb|center|600px|<small> The Illinois income tax credit and federal income tax deduction basis for funding of <i>Never Split Tens</i>. </small>]]
+[[File: TaxIncentives.jpg|thumb|center|600px|<small> The Illinois income tax credit and federal income tax deduction basis for funding of <i>Never Split Tens</i>. </small>]]
 ====Example B – Corporate====
@@ Line 104: / Line 104: @@
 As mentioned earlier, please note that the request of $290,000, while based on a preliminary production budget estimate, is only for illustrative purposes.
-NOTE:  If the following Table is not visible in your browser, go directly to the Table here:</br>[[Media:Taxincentivescorporate.jpg]]
+NOTE:  If the following Table is not visible in your browser, go directly to the Table here:</br>[[Media:TaxIncentivesCorporate.jpg]]
-[[File: Taxincentivescorporate.jpg|thumb|center|600px|<small> The Illinois income tax credit and federal income tax deduction basis for funding of <i>Never Split Tens</i> for corporations in a given federal tax bracket.</small>]]
+[[File: TaxIncentivesCorporate.jpg|thumb|center|600px|<small> The Illinois income tax credit and federal income tax deduction basis for funding of <i>Never Split Tens</i> for corporations in a given federal tax bracket.</small>]]
 ===Investor Share of Profits===

@@ Line 34: / Line 34: @@
 ==Funding for Never Split Tens==
 ===Proposal===
-The producers request a $2.9 million loan for up to eight months from those with large state and federal tax liabilities to whom you provide professional accounting and investment advice.  The collateral items are related to:
+The producers request a $290,000 loan for up to eight months from those with large state and federal tax liabilities to whom you provide professional accounting and investment advice.  The collateral items are related to:
 a) Illinois tax credits based on 35 ILCS 16/, and </br>
@@ Line 41: / Line 41: @@
 The loan will provide a significant portion of the production costs of the filming of a major motion picture in Illinois in the popular casino gambling genre.   The eight month period results from a projected five month filming period and a two to three month period for receipt of the Illinois tax credit from the Illinois Film Office after filming has been completed.
-Please note that the request of $2.9 million, while based on a preliminary production budget estimate, is for illustrative purposes.  The actual amount requested will result from an audit by the Illinois Film Office of the production budget.  This will determine the actual amount to be spent in Illinois.
+Please note that the request of $290,000, while based on a preliminary production budget estimate, is for illustrative purposes.  The actual amount requested will result from an audit by the Illinois Film Office of the production budget.  This will determine the actual amount to be spent in Illinois.
 The producers calculate below an annualized 35% return using a federal tax bracket of 20% and an annualized return of 58% using a federal tax bracket of 35%.  These surprisingly large returns result entirely from state and federal government investment incentive programs.
@@ Line 72: / Line 72: @@
 Michele.McGee@illinois.gov
-As an example, say a film company spends $10 million in Illinois in 2013.  They obtain a 30% or $3 million tax credit.  That credit can be transferred to any entity which has an Illinois tax liability and, assuming the film production occurred in 2013, it can be broken up into credits from tax year 2013 through 2017.  This is not a deduction; it is an actual tax credit.
+As an example, say a film company spends $1 million in Illinois in 2013.  They obtain a 30% or $300,000 tax credit.  That credit can be transferred to any entity which has an Illinois tax liability and, assuming the film production occurred in 2013, it can be broken up into credits from tax year 2013 through 2017.  This is not a deduction; it is an actual tax credit.
 In the usual scenario, film companies obtain payment of the tax credit from the state of Illinois after production is completed, sell those credits through a broker, and use the proceeds to cover post-production expenses such as editing, sound dubbing, and deferred A-list actor salaries (usually combined with points on the film profits).  The credit is provided by the state to the producer after auditing, within 2-3 months of the termination of film shooting.  As a result, if the film takes 4-5 months to shoot, the credit is provided by Illinois within 6-8 months of the beginning of shooting.
@@ Line 85: / Line 85: @@
 The producers therefore wish to approach those with large Illinois tax liabilities.  Either corporations doing business in Illinois or attorneys in large firms are appropriate fits.  Some of these have large incomes, large tax liabilities, and are associated with a significantly large number of partners.  The appropriate manner by which to approach these groups is through their advising accountants.
-In the above example, the producers budget spending $10 million in Illinois.  The loaning entity or individuals provide a loan of $2.9 million.  After six to eight months, Illinois provides our production company the $3 million tax credit which is then transferred to the loaning entity or individuals.  With that $100,000 paid back in interest, the earnings on the loan is $100,000/$2,900,000 x 100 = 3.4% for eight months, equivalent to 5.2% interest annualized.  (Note:  The full payment comes from the Illinois tax credit, not the production company, and therefore the "interest" is not income.)
+In the above example, the producers budget spending $100,000 in Illinois.  The loaning entity or individuals provide a loan of $290,000.  After six to eight months, Illinois provides our production company the $300,000 tax credit which is then transferred to the loaning entity or individuals.  With that $10,000 paid back in interest, the earnings on the loan is $10,000/$290,000 x 100 = 3.4% for eight months, equivalent to 5.2% interest annualized.  (Note:  The full payment comes from the Illinois tax credit, not the production company, and therefore the "interest" is not income.)
 ===Federal Deduction===
@@ Line 100: / Line 100: @@
 ====Example B – Corporate====
-If a single firm provides the entire loan, its loan-investment of $2.9 million results in a $2.9 million federal deduction.  For those in, for example, the 20% tax bracket, this results in a tax savings of $580,000.  The earnings on the loan ($580,000+$100,000)/$2,900,000 x 100 = 23% for eight months, equivalent to 35% interest annualized.  A corporation paying federal taxes at the 35% rate would earn 58% annualized.
+If a single firm provides the entire loan, its loan-investment of $290,000 results in a $290,000 million federal deduction.  For those in, for example, the 20% tax bracket, this results in a tax savings of $58,000.  The earnings on the loan ($58,000+$10,000)/$290,000 x 100 = 23% for eight months, equivalent to 35% interest annualized.  A corporation paying federal taxes at the 35% rate would earn 58% annualized.
-As mentioned earlier, please note that the request of $2.9 million, while based on a preliminary production budget estimate, is only for illustrative purposes.
+As mentioned earlier, please note that the request of $290,000, while based on a preliminary production budget estimate, is only for illustrative purposes.
 NOTE:  If the following Table is not visible in your browser, go directly to the Table here:</br>[[Media:Taxincentivescorporate.jpg]]
@@ Line 132: / Line 132: @@
 The loan/investment proposal takes advantage of Illinois and federal statutes and now promises a large return because of the increase in the state of Illinois income tax rate to 5%.
-For an up to eight month loan of $2.9 million, the loaning entity or individuals receive $3.0 million (Illinois income tax credit) + $2.9 million (Federal income tax deduction) = $5.9 million in consideration.  Based on a 20% corporate federal tax bracket, the net "earnings" are $100,000 + $580,000 = $680,000.  That yields an annualized 35% return on the $2.9 million.  Based on a 35% individual federal tax bracket, the return is equivalent to an annualized 58% return.
+For an up to eight month loan of $290,000, the loaning entity or individuals receive $300,000 (Illinois income tax credit) + $290,000 (Federal income tax deduction) = $590,000 in consideration.  Based on a 20% corporate federal tax bracket, the net "earnings" are $10,000 + $58,000 = $68,000.  That yields an annualized 35% return on the $290,000 loan/investment.  Based on a 35% individual federal tax bracket, the return is equivalent to an annualized 58% return.
 <b>Please note that neither the state nor federal tax credit/deduction is based on the motion picture earning any profits.   They result solely on expenditures during production being made in the state of Illinois and the United States.</b>

@@ Line 20: / Line 20: @@
 As we will show, up to a 58% return on the investment can be obtained depending on the federal tax bracket.  The obvious question is why aren’t all wealthy individuals and corporations utilizing this?
-The primary answer lies in the Illinois income tax rate.  As will be seen in the examples provided later, a funding entity or individual must have a large Illinois tax liability to be able to take advantage of the Illinois Film Production Services Tax Credit Act of 2008.  The previous 3% tax rate did not create a sufficiently large tax liability.  The 67% increase to a 5% tax rate now makes many more entities and individuals able to take advantage of that state law.  Corporations and partners in accounting firms are now beginning to see the advantage of the concept we are proposing.
+First, the Film Production Services Tax Credit Act of 2008 became law only recently.  Many wealthy individuals and firms are simply not aware of it.  Many accounting firms are not aware of it.
 The mode of funding proposed has been underutilized for other reasons.  First, it suffers from the belief that investment in motion pictures is extremely risky.  While this is true, the mode proposed here DOES NOT depend on <i>Never Split Tens</i> earning a profit.

@@ Line 5: / Line 5: @@
 Logline:  When an eccentric M.I.T. math professor develops a computer system for winning blackjack and tests it with mob-backed money in casinos, he loses his wife and job but redeems himself when his huge winnings cause a revolution in the casino industry.  Based on a true story.
-Motion pictures can be characterized as plot driven ("Body Heat" and "The Sting"), by their setting ("Star Wars" and "Harry Potter"), or character driven ("A Beautiful Mind" and "Catch Me If You Can").  This motion picture is character driven.  As a result, Never Split Tens will be casting A-list actors in the roles of the protagonist,  his wife, and the gangster.  This will attract distributors in all modes, box office, electronic, and ancillary (please see Section Investor Share of Profits below).
+Motion pictures can be characterized as plot driven ("Body Heat" and "The Sting"), by their setting ("Star Wars" and "Harry Potter"), or character driven ("A Beautiful Mind" and "Catch Me If You Can").  This motion picture is character driven.  As a result, <i>Never Split Tens</i> will be casting A-list actors in the roles of the protagonist,  his wife, and the gangster.  This will attract distributors in all modes, box office, electronic, and ancillary (please see Section Investor Share of Profits below).
 ==Production Funding by Income Tax Credits and Deductions ==
@@ Line 15: / Line 15: @@
 ==Usual Funding Modes==
-In the usual case, the film company obtains the tax credit after completion of filming.  Our concept is to reverse the scenario:  The producers of Never Split Tens will be obtaining a tax credit and are seeking an entity or individuals to provide a loan based on that tax credit as collateral before production begins.  Accountants are encouraged to suggest this concept to their select clients seeking substantial no-risk tax savings.
+In the usual case, the film company obtains the tax credit after completion of filming.  Our concept is to reverse the scenario:  The producers of <i>Never Split Tens</i> will be obtaining a tax credit and are seeking an entity or individuals to provide a loan based on that tax credit as collateral before production begins.  Accountants are encouraged to suggest this concept to their select clients seeking substantial no-risk tax savings.
 ==Why Isn’t Everyone Doing This?==
@@ Line 79: / Line 79: @@
 . the large middle-man broker fees.
-The producers of Never Split Tens are reversing the scenario.  They will be obtaining a tax credit and are looking for an entity or individuals to provide a loan based on that tax credit as collateral before production begins.
+The producers of <i>Never Split Tens</i> are reversing the scenario.  They will be obtaining a tax credit and are looking for an entity or individuals to provide a loan based on that tax credit as collateral before production begins.
 The producers therefore wish to approach those with large Illinois tax liabilities.  Either corporations doing business in Illinois or attorneys in large firms are appropriate fits.  Some of these have large incomes, large tax liabilities, and are associated with a significantly large number of partners.  The appropriate manner by which to approach these groups is through their advising accountants.
@@ Line 99: / Line 99: @@
 ====Example B – Corporate====
 If a single firm provides the entire loan, its loan-investment of $2.9 million results in a $2.9 million federal deduction.  For those in, for example, the 20% tax bracket, this results in a tax savings of $580,000.  The earnings on the loan ($580,000+$100,000)/$2,900,000 x 100 = 23% for eight months, equivalent to 35% interest annualized.  A corporation paying federal taxes at the 35% rate would earn 58% annualized.
 NOTE:  If the following Table is not visible in your browser, go directly to the Table here:</br>[[Media:Taxincentivescorporate.jpg]]
@@ Line 143: / Line 145: @@
 Leslie M. Golden</br>
 Executive Producer</br>
-"Never Split Tens"</br>
+<i>Never Split Tens</i> </br>
 -848-6677