Unclear as to what expenses you will have as an author with a new writing business? You’re in luck! Take a look at this passage from my book, Business Tips and Taxes for Writers, and discover a few unexpected expenses to your writing business:
“Long before you have your book published, you will have incurred some expenses. Record all these expenses and keep your records for several years. Start-up expenses are a tax deduction, so keep good records.
The Internal Revenue Service says that start-up costs include: Analyses and surveys of potential markets; advertisements announcing the book launch; compensation for employees while they are being trained and for their instructors; travel and other necessary costs for securing prospective distributors, suppliers, or customers; professional services for attorneys and accountants; and corporation or partnership filing fees.
In addition, for writers and publishers, start-up costs might (also) include: book research including travel, books and reference materials; editors, graphic designers, layout designers, and indexers; website design and set up; and postage and office supplies to set up your office.”
Starting your writing business can involve a great deal more than originally expected. The list can be even greater than this one! Be prepared by taking into account any preliminary expenses before you start. See Chapter 7 of Business Tips and Taxes for Writers for even more financial advice.
Carol Topp, CPA