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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3166
Experience:  IRS licensed Enrolled Agent and tax instructor
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I will be doing bookkeeping for a man who writes books. He

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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?

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.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

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Customer: replied 11 months ago.
Your answer was great, thank you. I tried to rate you as excellent but I was not able to.Now I can. Thanks again.