Hey,
My client wrote a couple of books last year and she has expenses against no income in 08.
When she generates income (hopefully in 90), it will be royalties on Sch E.
Do I take the expenses on the Sch C for actually writing, editing and other expense, then the income on Sch E?
edit:
After reading TTB, I see that I can take the expenses on the Sch C and the income will also be Sch C subj to SE tax.
I answered my own question, unless you have some secrets I do not know!
My client wrote a couple of books last year and she has expenses against no income in 08.
When she generates income (hopefully in 90), it will be royalties on Sch E.
Do I take the expenses on the Sch C for actually writing, editing and other expense, then the income on Sch E?
edit:
After reading TTB, I see that I can take the expenses on the Sch C and the income will also be Sch C subj to SE tax.
I answered my own question, unless you have some secrets I do not know!
Comment