All Comments on '"I Could Write a Book"'

One thing that is true is one does not need to show a profit, or even revenue to get a legal deduction for allowed items. It all boils down to intent, during one audit this writer underwent, a nice stack of rejections slips sufficed. I may have set some kind of record because I was audited 4 years in a row, same issue.

Later on in life I used research costs, travel, hotels and meals when my poor efforts finally progressed to where some pieces actually sold.

Now that I write regularly doing "How To" articles for the Auto service industry, I don't get audited quite so much.

Remember that it is a good idea to KEEP all records, document everything because the IRS will not take your word for anything.

MGM

You not only need to be a book writer, you need to be a good bookkeeper. Keep records of everything.

the thing that really gets me is land ownership. A deed in your hand makes no difference. They will take your house and land if you miss a tax payment and can't pay. It is sad to think that everything you and maybe previous generations have worked for can be taken away for almost nothing. I think that goes against what we were founded on. We are still renting our land from the man. We are still working for the king.

you can only claim expenses for REPLACEMENT of business items, not 'expenses to put you in a position to trade', so, if you were a motor mechanic you cannot claim for your first set of spanners, but you can claim for replacements. Likewise you cannot claim a laptop because you bought it in order to write your first world-changing best seller, but if it falls to bits because you had to write your third so quickly because Speilberg was desparate to film it, then claim for the replacement!

The time to prepare for the audit you hope to never have, is "now".

Record-keeping (substantiation) is a key element.

That said, expenses on zero revenues is most definitely going to raise the eyebrow of a government bureaucrat.

The IRS and your fellow citizens thank you for paying taxes on the income from your primary occupation at Intel.

Unlike taxation during under the Roman empire, the rules governing taxation are published and knowable. If their complexity exceeds your education and desire to understand, experts can be hired to help you interpret them.

If you follow the rules, you can lower your taxes. If you want to engage in wishful thinking that tax laws will change to become convenient for you and your situation, then you are in the right place. Literotica is a great place for exploring fantasies. However, it will not reduce your taxes.