Changes

<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.

==The Motion Picture==

==The Motion Picture==

==Funding for Never Split Tens==

==Funding for Never Split Tens==

===Proposal===

===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. 

 

Specifically, the collateral items are related to:

a) Illinois tax credits based on 35 ILCS 16/, and </br>

a) Illinois tax credits based on 35 ILCS 16/, and </br>

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.

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===

===Federal Deduction===

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%.

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====

====Example B – Corporate====

As mentioned earlier, please note that the request of $290,000, 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]]

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===

===Investor Share of Profits===

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,

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==

==Summary==

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 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==

==Contact==