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Can Travel for Travel Writing Be Expensed?
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johnwu Offline

Posts: 119
Joined: Nov 2011
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Post: #4
RE: Can Travel for Travel Writing Be Expensed?
(07-02-2012 09:12 AM)Roosh Wrote:  It sure can, but there has to be some money coming in. You can't write a complete loss and call it a business.

When you file your personal taxes, you just set up your income and expenses in Schedule C. Turbotax and most software can handle that.

If you live outside of the USA for 11 out of 12 months, you may be able to use the foreign income exclusion deduction. It's still a grey area if location independents can use that, so ask an accountant.

You actually can write off expenses even though you haven't been bringing in any profit, or passing the profit test of the IRS.

The key here is to have a forecast you have made, showing estimates of losses for the first few years, and then eventually getting profits in the later years, along with carrying out everything in a business like manner. In this situation it is a little trickier, but the point is to show to the IRS that you are trying to earn a profit, and not just having fun or deducting tax expenses for the hell of it. To prove you're a business just look at my post above.

You COULD run losses for nine years in a row (people have done so), and still be legally considered to be in business, as long as you appeared to be a legitimate business and not a hobby, so the deductions would be allowed under the eyes of the IRS.
(This post was last modified: 07-02-2012 11:20 AM by johnwu.)
07-02-2012 11:19 AM
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RE: Can Travel for Travel Writing Be Expensed? - johnwu - 07-02-2012 11:19 AM

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