What’s in this article?
If you have film property, you have to get it certified. To do this, you would apply to the Canadian Audio-Visual Certifications Office of Canadian Heritage for a Canadian Film or Video Production Certificate (Part A) and/or a Certificate of Completion (Part B).
After your certification process is complete, you may acquire depreciable property of a specific class which qualifies for inclusion in another class, giving you a faster write-off. For example: A motion picture film (otherwise property of class 10(q)) becomes property of class 12(n) after certification, as a certified feature film, therefore allowing faster write-off.
Revenu Quebec says…..
The refundable Québec Tax Credit for Film Production Services (QPSTC) is jointly administered by the Société de développement des entreprises culturelles (SODEC) and the ministère du Revenu du Québec (Revenu Québec).
The base of the tax credit applies to all-spend production costs, which corresponds to the total of the qualified labour costs and the costs of qualified properties. The tax credit corresponds to 25% of the qualified expenditures incurred by an eligible corporation for services provided in Québec for the making of an eligible production. In addition, eligible expenditures that relate to computer-aided animation and special effects including the shooting of scenes in front of a chroma-key for use in an eligible production give rise to an increase in the rate of the tax credit. This increase corresponds to an additional rate of 20% of the qualified labour cost (broad notion).
Note: You may receive a T5013 pertaining to Certified Film Property. Enter the information from the T5013 on the applicable screen in the tax software.
Follow these steps in H&R Block’s tax software to file your 2015 taxes:
- Click the PREPARE tab.
- Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
- Click the checkbox labelled I had investments.
- Scroll to the bottom of the page and click Continue.
- Click the RRSPS AND INVESTMENTS icon. You will find yourself here:
- Under the OTHER INVESTMENT INCOME heading, click the checkbox labelled Certified film property (T691).
- Click Continue.
When you arrive at the Certified film property page, enter your information into the tax software.
- T691 : Alternative Minimum Tax (Canada Revenu Agency website)
- Tax credit for Québec film productions (Revenu Québec website)