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Subject Author Date
Expenses for a writer with no income for the year nickr 11-24-2006
Posted by nickr on November 24, 2006, 11:34 pm
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 What if I had no income as a writer for 2004, 2005, 2006.
And in 2007 I am writing and researching a book which will
not generate income until 2008 or even 2009. Can I still
deduct these expenses and claim a business loss, even though
I had no income -- as a writer -- for the year?

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Posted by @ on November 26, 2006, 11:09 am
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 nickr wrote:

> What if I had no income as a writer for 2004, 2005, 2006.
> And in 2007 I am writing and researching a book which will
> not generate income until 2008 or even 2009. Can I still
> deduct these expenses and claim a business loss, even though
> I had no income -- as a writer -- for the year?

This is a very clear facts and circumstances issue. The
is, as it usually is, "it depends"! In this case, it depends
on how much income you have and the expenses being discussed.
If you fill-in the pieces of the last sentence, someone may
be able to assist you.

Dick

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on November 28, 2006, 1:03 am
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Dick Adams <rdadams@smart.net) wrote:
> nickr wrote:

>> What if I had no income as a writer for 2004, 2005, 2006.
>> And in 2007 I am writing and researching a book which will
>> not generate income until 2008 or even 2009. Can I still
>> deduct these expenses and claim a business loss, even though
>> I had no income -- as a writer -- for the year?

> This is a very clear facts and circumstances issue. The
> is, as it usually is, "it depends"! In this case, it depends
> on how much income you have and the expenses being discussed.
> If you fill-in the pieces of the last sentence, someone may
> be able to assist you.

My understanding is that writers generally have to
capitalize their expenses and depreciate them over the life
of the book's income stream, or something like that.

Is that at all accurate?

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by nickr on November 28, 2006, 9:03 pm
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Dick Adams wrote:
> nickr wrote:

>> What if I had no income as a writer for 2004, 2005, 2006.
>> And in 2007 I am writing and researching a book which will
>> not generate income until 2008 or even 2009. Can I still
>> deduct these expenses and claim a business loss, even though
>> I had no income -- as a writer -- for the year?

> This is a very clear facts and circumstances issue. The
> is, as it usually is, "it depends"! In this case, it depends
> on how much income you have and the expenses being discussed.
> If you fill-in the pieces of the last sentence, someone may
> be able to assist you.

Let's say $20,000 expenses, travel, computer, books, etc.
Zero income for the year. (Spouse works. have investment
income.)

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by nickr on November 28, 2006, 9:03 pm
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Stuart A. Bronstein wrote:
> Dick Adams <rdadams@smart.net) wrote:
>> nickr wrote:

>>> What if I had no income as a writer for 2004, 2005, 2006.
>>> And in 2007 I am writing and researching a book which will
>>> not generate income until 2008 or even 2009. Can I still
>>> deduct these expenses and claim a business loss, even though
>>> I had no income -- as a writer -- for the year?

>> This is a very clear facts and circumstances issue. The
>> is, as it usually is, "it depends"! In this case, it depends
>> on how much income you have and the expenses being discussed.
>> If you fill-in the pieces of the last sentence, someone may
>> be able to assist you.

> My understanding is that writers generally have to
> capitalize their expenses and depreciate them over the life
> of the book's income stream, or something like that.
>
> Is that at all accurate?

Sounds implausble on on a number of fronts .... I think
there is a specific IRS ruling on this stuff.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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