Ruscsak Films and Publishing

Location,City : United States / Mansfield

Max Target : $ 200000

Equity on offer : 2 %

Min Target : $ 200000

Equity on offer : 2 %

Industry :
Entertainment & leisure

Investment Round :
Early stage

Stage :

Website : Visit


Merging the World of Books and Film, and having fun while doing it.
We overcome and we will achieve!
Most of our films are based on books, making the marketing easier and doubling the effort without doubling the work.
The report on the global agricultural films market provides qualitative and quantitative analysis for the period from 2017 to 2025. The report predicts the global agricultural films market to grow with a CAGR of 9.45% over the forecast period from 2019-2025. The study on agricultural films market covers the analysis of the leading geographies such as North America, Europe, Asia-Pacific, and RoW for the period of 2017 to 2025.

Notable Achievements

  • We are in tentative talka for A list talent for the Fallen
  • Raising 15K for the attachment of key talent for our first film
  • LOI/ Deal Memos are being put in place for the first film
  • Location of the film has changed to Louisiana for better tax incentives
  • Raising an additional 20K for the same film for the legal end

Pitch Video

The Business

With IRS Section 181, investments in film with budgets below $15,000,000 are 100% tax deductible for revenue. Consider investing with us in a variety of projects by contacting Ruscsak Films directly. We are involved in some high profile projects which present lucrative opportunities for serious investors and individuals looking to gain tax deductions and make their dreams a reality. Please read below to learn more.

The American Jobs Creation Act Of 2004 and the 2004 enactment of Section 181, marked an unprecedented change in U.S. policy toward the phenomenon known as “Runaway Production” for the film industry. Hollywood, like many American industries, had grown tired of the high cost of labor and taxes in the United States. Canada and other countries identified the potential financial benefit and took advantage by successfully luring American film and television production onto their soil, taking enormous amounts of production dollars with them. The government’s reaction was to include Section 181 within the American Jobs Creation Act of 2004. Section 181 offers tax incentives for investors in independent film and television productions produced within the United States.

Section 181 states that investment in a motion picture shot in the US is 100% tax deductible for the investor in the same year invested. Under Section 181 an investor may deduct the money which is invested in a film or television production from his or her passive income earned in the same year. If the investor is actively involved in the operation of the production, he or she may deduct the amount of investment from all active income earned in the same year. Productions with budgets below $15,000,000 (up to $20,000,000) which have at least seventy-five percent 75% of its production completed within the United States qualify under Section 181. Investors can be either individuals or businesses.

• 100% of the motion picture costs are deductible in the same year of investment.
• 75% of the motion picture must be shot in the US to qualify for Section 181
• There is a $15 to $20 million dollar budget cap.
• There is no minimum film production budget cost.
• TV pilots, TV episodes (up to 44), short films, music videos and feature films all qualify for Section 181.
• Section 181 can be applied to active income or passive income.
• Investors can be either individuals or businesses.
• Section 181 is retroactive to 2004 and was just renewed as part of the ‘Fiscal Cliff’ Bill on early 2013.
• There is no expectation for film distribution or film completion.
• The motion pictures corporation issues Schedule K-1’s to the investors so they can take advantage of Section 181.

Tax rebates and incentives for money spent on film or television production within a particular state can be combined with the benefits of Section 181 allowing an investor to greatly minimize his or her risk on what would ordinarily be considered a risky investment. For example, if a tax payer is in the thirty-five percent (35%) tax bracket and a qualifying film is shot in Louisiana which has a state tax credit up to forty percent (40%), an investor has greatly reduced their risk. They would get the deduction of their federal taxes equal to their investment PLUS most states with incentives monetize the credits BEFORE production for up to 90% of the credit amount. Continuing this example, if a film is shot in Louisiana with a budget of $1,000,000, the state would provide the production entity up to 40% of the entire budget in transferable state tax credits. If the investor was not a resident of Louisiana, the state would monetize 90% of the credit to the production company before filming commenced. That would provide the investors a return of $360,000 ($1,000,000 x .40 x .90) before filming even began. Most states in the United States that have some type of tax credit or rebate plan.

For certain audio visual works (referred to herein as “Qualified Audio-Visual Works”) that commence principal photography from January 1, 2008 through December 31, 2013, Section 181 permits a 100% write-off (the “Film Deduction”) for the first $15 million of the cost (“Film Costs”) of such works, regardless of what media they are destined for (e.g., theatrical, television, DVD, etc.) and regardless of whether the particular expenses were incurred before or after the dates set forth above (as long as commencement of principal photography falls within those dates). It seems likely that Section 181 will be extended, since it has been repeatedly extended so far, even retroactively to prior years (although it is hard to see how that approach encourages U.S. production other than by clairvoyants).

Seventy-five percent of the total compensation relating to the audio-visual work paid for services performed by actors, directors, producers (which probably includes executive producers and associate producers), writers, composers, choreographers, casting agents, camera operators, set designers, lighting technicians, make-up artists, and other persons directly involved in the production of the film, whether employees or independent contractors (“Total Compensation”) must be paid for such services rendered in the United States (“U.S. Compensation”).

The regulations permit the current deduction of all costs, including development and pre-production costs, relating to a film if the taxpayer reasonably believes that (a) the film will ultimately be a Qualified Audio-Visual Work and (b) the film will be set for production (referred to in the industry as “greenlit”). However, the deduction of these costs must be recaptured as ordinary income in any subsequent taxable year during which both these requirements are no longer met.

Only the taxpayer that owns the Qualified Audio-Visual Work for tax purposes (based on owning the benefits and burdens of the work) and pays the Film Costs can take the Film Deduction, even if it pays an independent production company to physically produce the work. Thus, the Film Deduction applies to the taxpayer that is otherwise required to capitalize the Film Costs.

The taxpayer is required to make a binding election to deduct the Film Deduction in lieu of normal income forecast amortization with respect to each particular Qualified Audio-Visual Work. The election must be made by the due date (including extensions) of the tax return for the first tax year in which qualifying costs for such work could be deducted.

More important than what is written in Section 181 is what is not written, since taxpayers must consider all the other provisions and doctrines of existing tax law, two of which are discussed below.

If the production activity constitutes a trade or business, as seems likely to be the case, the Film Deduction will be subject to the passive loss rules with respect to certain taxpayers, including individuals and personal service corporations. Individuals and personal service corporations that do not “materially participate” in the activity can only deduct passive losses, including the Film Deduction, to the extent of “passive income,” which generally is limited to income from real estate and from passive interests in businesses held by pass-through entities. Passive income also includes income from the Qualified Audio-Visual Work. If the Film Deduction is restricted under the passive loss rules, the excess carries forward and may be deducted when it is “freed up” by future passive income or upon disposition of the taxpayer’s interest in the activity.

For individuals and Closely Held Corporations, the Film Deduction will also be subject to the at-risk rules. Under the at-risk rules, the taxpayer may only take a deduction for direct investment and borrowed amounts for which the taxpayer has ultimate direct recourse liability. For example, if any portion of the Film Deduction is funded with debt, the taxpayer must have ultimate liability for that debt directly to the lender, without a right to reimbursement from any third party. Such a liability will be included in the “at-risk” amount even if the risk is ameliorated with future license payments from a creditworthy licensee.

Even if the passive loss rules and at-risk rules do not restrict the Film Deduction, the net result is to merely accelerate the deduction of Film Costs by about one year, since most Film Costs would be deductible in the year the film is released, at least for independent films.

The Market

Most of our films are based on books, making the marketing easier and doubling the effort without doubling the work.
The report on the global agricultural films market provides qualitative and quantitative analysis for the period from 2017 to 2025. The report predicts the global agricultural films market to grow with a CAGR of 9.45% over the forecast period from 2019-2025. The study on agricultural films market covers the analysis of the leading geographies such as North America, Europe, Asia-Pacific, and RoW for the period of 2017 to 2025.

Objective/Future (Use of funds)

Right now the entertainment from an outside point is in a state of panic. Studios are shut down. Films are delayed with theater release are being rushed to video on demand. But from an insider this is a time that is critical. Studios are rushing to get content. Actors, Directors and every position that needs to be filled behind the camera is now open for calls and for attachments. This opportunity usually only happens during the American Film Market that happens every November.

Now what I have set up due to my Line producer.and I'm enclosing all the files as to type everything out... it is much better to have the full files.
This is the opening logo for the Fallen it will be cleaned up a bit more in the studio.
And this is the teaser for the book in which the first film is based off of.

Now I would never ask an investor to invest when they either do not understand the business or they don;t have all of the information so I'm going to explain a bit and it may look more complicated then it really is. And I have attached all three investing agreements not on letter head but for him to see. As well as the concept art for the one video game and mock up from the merchandising.

Level one investor: Single Film , Please see the Development Agreement
This is done with an investment of $25k (Please see the investor agreement of 25k)
Roi: 50% or more of the initial investment comes back with the tax rebate and tax incentives. This is done two months after the completed filming. Then 1% equity in the film for both box office and merchandising for one year.

Level two investor: Also single film . Please see casting letter template
Investment $180k , this is used for the attachment of cast and crew who needs proof of funds or 10% of total pay. We normally do not need to pay up front but the pay is held in escrow and does not exceed $5k per talent.
Roi: 50% or more of the initial investment comes back with the tax rebate and tax incentives. This is done two months after the completed filming. Then 1%- 3% equity in the film for both box office and merchandising for one- two year (s).

Level three: Is studio level investors.
These are the ones who put in the bulk of the investment but only after level one and two have been completed. Their equity does not change for the life of the production or merchandising.

Now for the company what I'm offering. And I can do this because the studios want my content and the actors want to be attached. Please image 1. This a project that we had to shelve however both actors are now attached to the Fallen.

Investment :$1,000,000
Equity in the company this includes book sales - 20% total equity
How the funds are used and I broke this down so it's profitable as I never place my bet on one thing.

the total investment would be divided between 4 films Leaving $200,000 in escrow for a possible 5th film.

So in a sense the investor is now level one and two investor in 4 films. So they get the original investment back with the tax rebates and incentives. Plus 20% equity for 5 years in my company. Now I would like for the original investment to be a rolling investment for the five years. Meaning, producing 4-5 films a year each year. At the end of 5 years the 20% going away.

Ok I'm going to try explain this in a way that makes sense.
I need to cover contrasts fees and other legal for the full budget. This a quick Loan with a decent ROI. Not a long term investment.
$200k for a ROI of $500k in 90 days. I have the LOI for the budget release pending contracts and legal stuff.

The Team

Melisa Ruscsak - President  View Profile

The words "give up" and "can't" are not in my vocabulary. I was told in 2011 after a debilitating medical incident that I would never live a normal life and be able to care for myself. I now own my own company, host my own radio show and pod cast, as well as work out five nights a week. I have overcome being on the brink of death because I refuse to give up. I also refuse to waste a second not following my passion. People call me tenacious. I call it determination. I work hard for myself but I push harder when other people are relying on me.

Tina Maurine - COO

With her military career and duel degrees Tina has the mind set to see this company succeed. She has had 4 successful exits as an entrepreneur. She is currently working her fourth start up with her husband while taking the reins as CFO of Ruscsak Films.

Sheri Chapman - Executive Vice President Human Resources

Sheri has been working in Human Resources for over 30 years. She has proven exceptionally skilled in dealing with any problem that requires a bit of finesse.

Exit Strategy

This is 90 day exit. Seriously I just need to cover contracts and fast.
Roi $500k in 90 days or less}

Make an offer

Join our team

Looking For : Fund Raiser
Equity : 3%

I'm honest. I am a creative person and I need help with the fundraising side. I would love to have someone come in take care of acquiring the funds; this would earn you 5% and the rest would go to the budgets. Investors you bring in would have a percent of the film with producer credits. Adding a percent for you in the film is negotiable as well.}

Reviews, Comments and Questions

I wish you all the best with it.

May 29, 2020

We are interested in providing funding, either as an equity investment or a direct loan. Do contact for more information, if interested. Regards

May 15, 2020

Investing in start-ups involves risks, including illiquidity, lack of dividends, loss of capital and it should be done as part of a diversified portfolio. Gunnga is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own financial decisions.  
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