Legal Question in Entertainment Law in California

Re: California film investment

Not really. An investor can write off a "loss", but can't generally take a deduction for an investment made, but for which there's still a possibility of a return.

Now, if you're operating as a nonprofit organization (i.e., a charity), you can take donations, which the donors can deduct on their tax returns... but this involves a lengthy process of securing your tax-exempt status from the IRS before you solicit the contributions.

This is complex stuff and implicates not only tax law, but also the Federal and State securities law.

It is IMPERATIVE that you consult experienced counsel before soliciting investment or donation for your film.

There are a number of antifraud provisions with which you must comply. Failure to do so can result in dire penalties.