More Tax Deductions for Writers

February 20th, 2012 → 8:00 am @ Carol

The list of tax deductions for writers continues…

• Depreciation applies to purchases of computers, furniture or equipment that will last longer than a year. Depreciation is an accounting term meaning that the value of the equipment is deducted on the tax return over several years. A Section 179 expense means that the full cost of the equipment is deducted in the year it was purchased. Your CPA can determine whether you should depreciate your equipment expense or deduct all of it as a Section 179 expense. Depreciation calculations can be complex. Give your CPA information on your purchase, including the cost and the date of purchase, and he or she will calculate the correct deduction to use on the tax return.

                     See my small business expense form under Resources/Tax Prep Helps

• Insurance on your inventory or professional liability insurance on your business.

• Legal and professional services to lawyers and accountants. Other professionals are listed under contract labor.

• Office expenses including postage, paper, ink, envelopes, etc…

Carol Topp, CPA