Tax Question: Deducting crew meals for film production? 100% deductible?

15 Thanks for the info! Does this also apply to craft services (snacks/drinks throughout the day) or just the actual meals? And do I need any special documentation beyond receipts and a production schedule showing the long days?

8 The 100% deduction should apply to all food provided during the workday, including craft services, as long as they're provided on-set for the same business reasons - keeping the crew on location and working efficiently. For documentation, keep all receipts but also maintain a production schedule or call sheets showing the filming dates, locations, and crew size. It's also good to have a written policy (even just in your production documents) stating that meals are provided because crew members need to remain on set during filming hours.

19 Was it actually helpful for film specific stuff? Most tax software I've tried doesn't seem to understand industry-specific deductions like this.

3 I'm a bit suspicious of these online services. Did it actually tell you anything different than what a regular accountant would? And is it secure to upload all your financial documents?

12 It was incredibly helpful for film-specific deductions! The system actually has specialized knowledge about entertainment industry rules. It flagged several deductions I would have missed, including how to properly document and categorize different types of on-set meals versus per diems. Regarding security, that was my concern too at first. They use bank-level encryption for all uploads and their privacy policy is very clear that they don't share your info. The value I got was definitely beyond what my previous accountant provided - they had specific film production tax knowledge that general accountants often miss.

17 How much does that service cost? Seems like it would be expensive just to ask a tax question.

3 This sounds like a scam. How could a third-party service possibly get you through to the IRS faster than calling directly? The IRS phone system is notoriously terrible.

5 The value is absolutely worth it when you're dealing with specific tax questions that could impact thousands in deductions. They don't charge based on your question - it's a flat service fee for getting you through the IRS phone maze. It's definitely not a scam. They use a proprietary system that navigates the IRS phone tree and waits on hold for you. When an agent comes on the line, you get a call connecting you directly. I was skeptical too until I tried it. The time saved alone was worth it - I waited weeks trying to get through myself before using them and got nowhere.

1 Thank you! I hadn't even thought about Section 181. Our budget is definitely under that threshold (way under, lol). What exactly does Section 181 allow that's different from regular business deductions?

21 Section 181 allows you to immediately deduct your production costs rather than amortizing them over time as the film generates income. This is huge for cash flow and tax planning since you get the full deduction in the year the money is spent rather than spreading it out. For qualifying productions under $15M, you can deduct 100% of your costs in the year incurred, even if the film isn't completed yet. This applies to most direct production costs - not just the crew meals we were discussing but almost everything except distribution costs.

6 I've had better luck with H&R Block's self-employed version, surprisingly. It doesn't have film-specific categories, but it does let you create custom business categories which I use for things like "on-set meals" vs regular business meals.

10 Thanks for the suggestion! I'll give H&R Block a try this year. The custom categories would definitely help since film production has so many unique expense types that don't fit neatly into the standard business categories.

This is really helpful advice! I'm just getting started with my first film production and hadn't thought about the distinction between crew meals and meals for visitors. Quick question - what exactly should be included in those production logs you mentioned? Just the date, number of people, and meal type, or do you need more detailed information like specific crew roles or shooting schedule details?

For production logs, I'd recommend including: date, location, call time/wrap time, number of crew fed, meal type (breakfast/lunch/dinner/craft services), and a brief note about why crew couldn't leave (e.g., "remote location - no nearby restaurants" or "complex setup required continuous presence"). You don't need individual crew roles, but it's helpful to note if it was core crew vs. day players since that shows the business necessity. Also include your shooting schedule or call sheets as backup documentation - this proves the long days that necessitated providing meals. The key is showing the IRS that these weren't just nice-to-have perks but actual business necessities for keeping production running smoothly. Good luck with your first film!

This is incredibly helpful advice, especially about the union contract documentation! I hadn't considered that angle but it makes perfect sense that having contractual meal requirements would strengthen the business necessity argument. Question about the consistency point you mentioned - if we have some meals that are clearly on-set crew meals (100% deductible) but also some client dinners or meetings with potential distributors (50% deductible), is it okay to have both categories in the same tax filing? Or does the IRS expect you to pick one approach and stick with it across all meal expenses? Also, do you happen to know if there are any specific forms or schedules where film productions should be reporting these meal deductions, or does it all just go under regular business meal expenses on Schedule C?

You're absolutely right to ask about this - consistency within categories is key, but having different types of meal expenses with different deduction percentages is totally normal and expected. The IRS actually wants you to categorize accurately rather than lumping everything together. So yes, you can definitely have on-set crew meals at 100% AND client dinners/distributor meetings at 50% in the same filing. Just make sure each expense is properly categorized and documented. I usually create separate line items on Schedule C like "On-Set Crew Meals" vs "Business Entertainment Meals" to make the distinction clear. For reporting, it all goes under regular business expenses on Schedule C - there's no special film production schedule. I typically put crew meals under "Other Business Expenses" with a clear description, while entertainment meals might go under "Business Meals" or also "Other" depending on how detailed I want to be. The key is having good backup documentation for each category so if you're ever questioned, you can show exactly why certain meals qualified for 100% vs 50% deduction.

Really good point about the timing of deductions! I'm actually dealing with a production that started in December and will finish in January, so this is super relevant. Just to clarify - if I paid for catering in December 2024 but the filming continues into January 2025, I should deduct those December expenses on my 2024 taxes even though the production isn't complete yet, correct? Also appreciate the heads up about cast vs crew meal distinctions. We have a few name actors who will be on set for extended periods, so it sounds like their on-set meals should qualify for the same 100% deduction as crew meals since they're also required to stay on location during filming. Thanks for the wrap party warning too - hadn't thought about how those mixed events might be treated differently!