Jan 29, 2019 | #TaxAdviceforWriters, Tax Series - Miscellaneous Topics, Writing Life
You’ve made it this far. You’ve mastered income, developed your business plan, chose your taxable business entity, learned the framework for deductible expenses, organized your transactions, and even seen how artists have fared in Tax Court (with and without...
Jan 22, 2019 | #TaxAdviceforWriters, Tax Series - Expenses and Deductions, Writing Life
You know the framework for deductible expenses (Ordinary! Necessary! Reasonable in amount!) and you’ve got a handle on what to track for your writing business. Now we dive into the details: what exactly needs to be recorded and how.What to DocumentAll deductible...
Jan 22, 2019 | #TaxAdviceforWriters, Tax Series - Expenses and Deductions, Writing Life
Welcome back, tax pros! In Expenses, Part I, we looked at the framework for business deductions and some common categories of expense for writers. I know some of you might have been frustrated by the lack of a clear-cut list for all your deductible business expenses,...
Jan 22, 2019 | #TaxAdviceforWriters, Tax Series - Expenses and Deductions, Writing Life
So, you’re receiving payments and you’ve chosen your business’s tax structure. Now it’s time to start tracking and recording your expenses. The most basic accounting formula is:Revenue – Expenses = Net Income.The government taxes you on your net income, which means as...
Jan 15, 2019 | #TaxAdviceforWriters, Tax Series - Business Entities, Writing Life
Introduction to S Corps We outlined the basics for S Corporations in the Business Entities section, but understanding the advantages and disadvantages of operating an S Corporation can be challenging. Let’s review the business structure and then take it through...
Jan 15, 2019 | #TaxAdviceforWriters, Tax Series - Business Entities, Writing Life
Business Entities In the first section of this blog series, we looked at income and how the IRS defines business income. So now that you have some money coming in for your work, it’s time to decide what form your business should take for tax purposes. All companies in...
Jan 9, 2019 | #TaxAdviceforWriters, Tax Series - Income, Writing Life
Welcome back to #TaxAdviceforWriters! In Income, Part I, we looked at the basics of how the IRS classifies income and whether your writing should be categorized as profit seeking (reported on Schedule C, with expenses and losses allowed) or as a hobby (no expenses or...
Jan 9, 2019 | #TaxAdviceforWriters, Tax Series - Income, Writing Life
This may sound like a silly topic, but it’s important to define what’s included in declarable business income on your Schedule C. Accounting Method First things first. You may notice a question on line F of the Schedule C or be asked by your tax prep software about...
Jan 9, 2019 | #TaxAdviceforWriters, Tax Series - Income, Writing Life
In case after case where artists have had to prove their art as a business rather than a hobby, the Tax Court has given substantial weight to one particular factor—whether the activity is conducted in a business-like manner. The good news is this factor is completely...
Jan 7, 2019 | #TaxAdviceforWriters, Tax Series - Income, Writing Life
For anyone who follows my blog, it’s no secret I spent a former life in accounting. I worked for sixteen years in corporate finance and was studying to become a CPA (that’s a certified public accountant for the non-numbers types) when my writing career took off. I...
