Re: writer's promo expenses


"troutcat" <troutcat@xxxxxxxx> wrote
A book I've written is being published in 2007. I plan to keep good
records of promotional expenses like travel, but realistically don't
expect to clear what the publisher paid me as an advance, which I
dealt with in last year's taxes, until 2008. Must I take 2007's
expenses as deductions for the 2007 tax year even if it means posting a
loss, or am I allowed to keep them in a shoebox til 2008 and use them
when the project begins to generate real income?



If you are a cash basis taxpayer, and you probably are, you report your
income when received and take your expenses when paid. So no, you can not
carry forward expenses paid in 2007 into 2008 to off-set income received in
2008.





--
Paul Thomas, CPA
paulthomascpapc@xxxxxxxxxxxxx


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