I listened to your blog talk radio interview. I am most concerned with my tax liabilities.
I have no employees but wondered what kind of taxes I can expect for my 2011 taxes. I am not sure if I will have income this year from my book as it is due out either in December or January. I have expenses of $5,500 so far this year. I also had similar expenses in 2010 but never filed anything. How would you advice me?
Also, how does one go about finding a CPA that deals with writers?
Thank You ~ your book looks wonderful and I’ll be sure to get a copy. It will be a blessing to many writers!
Congrats on the upcoming book.
Since you didn’t claim your expenses in 2010, you could go back and amend your 2010 tax return, but instead I recommend that you accumulate those expenses as start up expenses.
You can deduct up to $10,000 in start up expenses on your 2012 tax return (or your 2011 return if your book is released in Dec 2011).Any extra start-up expenses can be deducted over time (180 months).
I am assuming your business start date is the date your book is released.
To find a CPA, visit your state CPA society. Here’s a link: http://www.taxsites.com/cpa-societies.html.
The sites usually let you search by city and industry (Publishing).
Chapter 14 of Business Tips and Taxes for Writers has some tips on working with a CPA including questions to ask in an interview.
Carol Topp, CPA