Taxes and the Writer

[kailhofer]

Does anyone know a good source of information about tax records for writers?<br><br>Last year, our accountant suggested considering my writing as a business for tax purposes.<br><br>"But I haven't made any money." I replied.<br>She smiled. "Then you're operating your business at a loss. Your time and expenses can be a deduction."<br>My face twisted into a big, evil grin. Something I was doing anyway could save some of my money from the government. Yeah, life was good.<br><br>Since then, I've been keeping super-detailed records of how much time I spend trying to write, what I was working on, if the work was published or not... I really don't know how much of this I'm going to need, and would like to stop doing it if I don't have to.<br><br>Obviously, expenses like computer payments, paper, ink, postage, etc. are things to track. But what about time records? Is saying I spent 75 hours in August writing/editing/networking/marketing in my home office (that is, the desk in the back corner of the den) enough, or do I need to say more?<br><br>I've also heard that I'd need to show some teeny profit in three of the next five years to avoid being classed a hobby. If it's up to me, I can do that. Still, even if I'm still impoverished three years from now... until then, deductions should be good, and completely legal. Right?<br><br>Any pros out there who can shed some light on this?<br><br>Nate

[kailhofer]

Ok, you've confused me completely now, and I only barely understood this to begin with. <br><br>The pages I've seen online seem to be saying that the amount of time I spend at this would establish the "lack of passivity" required to be in Schedule C. You may be completely right on the time thing (I really don't know), but there shouldn't be any problem with the percentage of the home as office space and expenses, as I understand it. I think. I hope that I have the "profit motive" required. ('Cause, believe me, I'm motivated to turn a profit! :))<br><br>The best page I could find was this: http://www.forwriters.com/taxes.html<br><br>[Grumble.] This is why I pay an accountant in the first place. Does any of this sound like it has any merit??<br><br>Nate