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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2557
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I will be doing bookkeeping for a man who writes books. He

Customer Question

I will be doing bookkeeping for a man who writes books. He just started this year. He has NOT sold a book yet, but he has spent money to publish books.Can he take any of these expenses as "start-up" costs even though he has not sold anything yet?
Submitted: 3 days ago.
Category: Finance
Expert:  emc011075 replied 3 days ago.

Hi. My name is ***** ***** I will be happy to help you.

If he is already writing the book than he can deduct the expenses. If he is just thinking about writing a book than he has to wait until next year. You are probably familiar with 3 out of 5 years rule. If he can reasonably expect to break even or claim at least a small profit in 2017, he will be all right. However if he plans to spend next 4 years just writing the book, I would hold up claiming these expenses until later.

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