Did you know that if you are a professional author, your professional activities can be tax deductible?
The following factors, although not all inclusive, may help you to determine whether your activity is an activity engaged in for profit or a hobby:
- Does the time and effort put into the activity indicate an intention to make a profit?
- Do you depend on income from the activity?
- If there are losses, are they due to circumstances beyond your control or did they occur in the start-up phase of the business?
- Have you changed methods of operation to improve profitability?
- Do you have the knowledge needed to carry on the activity as a successful business?
- Have you made a profit in similar activities in the past?
- Does the activity make a profit in some years?
- Do you expect to make a profit in the future from the appreciation of assets used in the activity?
An activity is presumed for profit if it makes a profit in at least three of the last five tax years, including the current year.
Whether you qualify for a deduction this year, or not, Bowker is offering you 15% off our service during tax season. Go here for instructions on how to take advantage of this offer.
For further details about your qualifications for business expenses, you can visit the IRS website. Note that if you do not qualify for business expenses, you may also qualify for itemized expenses on on Schedule A, Form 1040.
