For 'normal' businesses you have to turn a profit after X number of years or Uncle Sam will basically say this business isn't viable and you can't write it off no more no more no more no more, however, freelance writing, art, etc. are in their own little category (as are some other volatile businesses.) Dear ol' unc recognizes that it takes years to build a freelance biz into a profit, if ever, and so it's okay to keep writing off your expenses. If you didn't write off your typewriter the same year you bought it, never fear. You're allowed three years before you declare it as a write off. For more tax advice, see your gov pages. They're free, as opposed to my tax accountant, who I adore but cringe every time I have to write a check for he fee. Ouchie. Oh well--I get to write off her fee from last year for this year 'cause--yep--it's a business expense.
Wednesday, February 27, 2008
It's a Taxing Time
Tax laws change all the time so check online, or your tax software, or your accountant before making use of any tax advice. Mine is, hold on to your writing-related receipts even if they're years old. Yes, especially the typewriter, ink/ribbon, paper, spare parts, mailing receipts, stamp purchases, and so forth. If you have a designated office then you can write off part of your utilities based on the square footage (including garbage service.) I have a designated phone line for the internet and that comes off my taxes too.