Georgia Film Tax Credit Part 2

Last week I discussed the GA film tax credit and how you can buy these credits at a discount. There was a private letter ruling 200951024 by the IRS on 12/18/2009 that indicated that the discount amount has to be recognized as a capital gain on your tax return. For example, in my situation I received a credit of $1,130 on my 2012 GA return at a cost of $1,000 paid in 2013. On my 2013 tax return,  I have to show the $130 as a short term capital gain.