Hello! I’m curious as to what’s the process for writing off materials that you’ve purchased specifically for writing your book. Are there categories that apply (computers, software) and some that don’t (research?)? What’s the step to identify those on taxes and do I need to set up an LLC to do it?
I’m a CPA and an author, so let me give you some advice.
If you sign up for my email list you’ll get my blog posts emailed to you (in a summary form) and get a list of tax deductions for writers. Go to TaxesForWriters.com and sign up in the lower right corner.
Then read some of the blog posts and articles on TaxesForWriters.com and click on my Tax Prep Helps page at http://taxesforwriters.com/?page_id=562
There you’ll find a few short articles and probably most helpful, my Small Business Expenses Form http://caroltoppcpa.com/resources/Small+BusinessExpensesForm.pdf
It’s a simple form I created for my tax clients to collect all their business expenses for tax preparation.
As for HOW to deduct your expenses, I explain all that in detail in my book, Business Tips and Taxes for Writers. It’s a lot to go into, more than a blog post can answer, so that’s why I wrote the book! You can order a paperback or pdf version for $14.95. Order here.
Hope that helps,
Carol Topp, CPA