Writer's expenses

[MAMalody]

I have a client that is turning out to be an author.  How are the expenses for a book handled for tax purposes?  Are they simply held and accumulated as basis in the book? Is there an online source I can review? Anything on the IRS web site? In this case we are talking prepayments to publisher, etc.

[Elrod]

MAMalody,  Try these...hope they help

http://www.nolo.com/legal-encyclopedia/tax-deductions-writers.html

http://writersrelief.com/blog/2012/03/taxes-for-writers-expenses-that-you-can-and-cant-write-off/

http://www.irs.gov/irb/2004-20_IRB/ar08.html

 

[Abby Normal]

Is it a hobby or a real business? Are they using a 'vanity' publisher? A lot of my 'authors' never made any money and I switched them all to hobbies.

[MAMalody]

Elrod, thanks.  I had seen Nolo before, I don't know why I didn't think of them this time.

jmdaviscpa, the is an actual writer.  Her husband has died and she is using writing to support herself and her kids.  

Thanks for the help.