Deduction for film distribution costs: allocation and carry forward depend on release timing and credited receipts. Deduction of a feature film's acquisition cost is allowed in full when rights are sold or the film is released for commercial exhibition at least ninety days before year end and exhibited or sold by the distributor; otherwise deduction is limited to amounts realised with any unallowed balance carried forward. Costs exclude positive print and advertising expenses. Deductions require that realised amounts or minimum guarantees and excess receipts be credited in the distributor's books (or received under cash accounting). Sale includes lease or minimum guarantee transfers and is deemed to occur on delivery of positive prints; distributor includes sub distributor.