Q: Start up expenses I never claimed on my tax return
December 6th, 2011 → 6:22 pm @ Carol // No Comments
Carol,
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!
Nanci
Nanci,
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
