Just started mine today. Maybe we could share about how we motivate ourselves to get it done (beyond having it done). My husband and I go out for lunch to celebrate.
Lots of great info here, but I want to address this: "You have to profit for 2 of the last 5 years." – That is not accurate. You're more likely to get audited if you never show a profit, but it is entirely legal to lose money at a business twenty years in a row. You still have to prove you are TRYING to make money and treating it like a business. Many people play it safe and don't claim business expenses until after they've made some income, and maybe then only deduct as much as they made, but if you have great records to show how you're trying to build your business as a writer, you can take a loss every year.
Just started mine today. Maybe we could share about how we motivate ourselves to get it done (beyond having it done). My husband and I go out for lunch to celebrate.
Lots of great info here, but I want to address this: "You have to profit for 2 of the last 5 years." – That is not accurate. You're more likely to get audited if you never show a profit, but it is entirely legal to lose money at a business twenty years in a row. You still have to prove you are TRYING to make money and treating it like a business. Many people play it safe and don't claim business expenses until after they've made some income, and maybe then only deduct as much as they made, but if you have great records to show how you're trying to build your business as a writer, you can take a loss every year.
Fantastic info! Thank you, Jessica. Taxes freak me out! Appreciate you sharing this. Gathering my support kitty now.
Thanks for the roll-up on this! Taxes definitely.on my mind right now and this really helps me navigate through it.