"John H. Fisher" <TaxService[at]aol.com> wrote:

- quote -

This is interesting. The IRS says that, under §195 an
author can't deduct expenses for researching a book,
claiming they are start-up expenses.

But under §263A, the expenses of a writer are not required
to be capitalized.

It looks like the ruling is based on the conclusion that in
the noted case the taxpayer wasn't really in the trade of
writing, but just preparing to be, by doing research over a
number of years. Since he wasn't yet in the business then
§263A didn't apply.

Is that about the size of it?

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

CCH TAX NEWS for April 26, 2007

FEDERAL NEWS

House Passes War Spending Bill with Small Business Tax Relief
http://tax.cchgroup.com/news/headlin...nws42607.htm#1

Research Expenses for Book Were Start-Up Expenditures; Deductions
Disallowed (Deward, TCS)
http://tax.cchgroup.com/news/headlin...nws42607.htm#2




STATE NEWS

Nevada --Sales and Use Tax: Legislation to Complete SST Conformity
Passes Senate
http://tax.cchgroup.com/news/headlin...nws42607.htm#3

New York --Sales and Use Tax: Videos Delivered Electronically Over the
Internet Not Subject to Tax
http://tax.cchgroup.com/news/headlin...nws42607.htm#4

Texas --Property Tax: Dismissal of Challenge to School Funding Bill
Reversed
http://tax.cchgroup.com/news/headlin...nws42607.htm#5



Missed a headline? Click here to review last week's tax news
http://tax.cchgroup.com/news/default.asp?PageID=4

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >