It has been said that Hollywood is of a particular political persuasion. Irrespective of what that political persuasion is, Hollywood’s undeniable political activity has led to one particular perk for itself in the Internal Revenue Code.
Some Hollywood personalities have become politically active regarding worker rights, immigration policy, environmental issues, and other issues. People are people. Each person has his or her views. No big deal. But, orchestrating a clear manipulation of tax law for pure personal gain would seem to cross the line for most Americans.
At this point, please pull out IRS Form 1040. The form is divided into three sections on the front and four sections on the back. For the purposes of this discussion, we are interested in three.