(1974)
Estate of Weldon L. Canfield, Deceased, Centerre Trust Company and Jean W. Canfield, Co-Executors and Jean W. Canfield, et al. v. Commissioner
This is a tax dispute case involving the investors who funded the 1974 movie ‘The Martyr’ [aka. Sie sind frei, Doktor Korczak]. The case from the tax court lists the actual financial information pertaining to the movie — including the budget, revenue that the film earned and the amount of revenue the film would have to earn in order to make a profit. Below is a brief breakdown of the expenses related to ‘The Martyr’:
The budget for ‘The Martyr’ was $1,900,000
The movie would have to generate “distributor’s gross receipts” of $4,150,000 for the investors to earn a profit.
‘The Martyr’ generated total revenue in the amount of $3,105.83 as of August 26, 1985. In accordance with the terms of the distribution agreement, the distributor, JGP, retained as distribution fees 70 percent of this amount, or $2,174.09. Therefore, the Partnership’s share of the total revenue realized from 1975 through August 26, 1985 was only $931.74.
Read the full court report below for further information.