Author- Book Writing

[Terry D EA]

This is a new area for me. A person who is authoring books for sale would seem to incur some expenses in doing so. Would this be a Sch C type business? What business code would be selected? I have a client who has some books they have written published. They use a dedicated room (space) in the home so could the office in home deduction be used? Sorry for all the questions but as I stated I have not worked with any authors before.

[Catherine]

Hi @Terry D I have an author.  A couple of them, actually.  Schedule C, yes indeed.  I forget the business code but could look it up at my office tomorrow.  Standard business expenses can include podcast hardware and hosting as well as web site domains, hosting, etc.  Office in home yes but frequently you will just carry unusable expenses forward until a year they make money.

In the deep and distant past royalties could be reported on Sch E and not subject to SE tax but that changed LONG ago.  They want the SE tax.  Which is sporadic for most authors (and when those unused home office expense carry-forwards come in handy).

[JMovichEA]

I use business code 711510 for the author I have

[Terry D EA]

Thanks!

[Catherine]

13 hours ago, JMovichEA said:

I use business code 711510 for the author I have

That's the one I have, as well.