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The Steve Laube Agency

Helping to Change the World…Word by Word

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The Steve Laube Agency

Helping to Change the World Word by Word

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Home » Writing Craft » Page 2

Writing Craft

Deadlines and Taxes

By Steve Laubeon April 15, 2024
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Two certainties in the life of a writer. Deadlines and taxes.

You know what a deadline is. It has the word “dead” in it for a reason. In addition to the reality of taxes, the April 15 income tax filing deadline for those living in the United States is intrinsic to the reality. (And since today is April 15, I thought it appropriate to revisit some key bits of information.)

What about those taxes?

First, is the obligatory disclaimer. I am not a tax attorney or a tax accountant. I am merely discussing concepts and ideas that you may or may not use in your situation. And, as always, when it comes to your taxes, make sure you follow the rules of your country, province, or state. And, if appropriate, consult a professional.

Some of you may roll your eyes and say, “I already know this.” But remember, there was a time when you did not. I get many beginner questions each year from debut authors discovering the industry’s business side for the first time.

Keep Good Records

One advantage of the self-employed writer is the ability to deduct certain expenses related to the writing profession. Writers-conference fees, purchasing books on writing, website hosting fees, promotional items used to market your book, etc. These are possible deductions, but you must have a record of each expense.

And I mean keep everything: receipts, ticket stubs, bank statements, check registers, ATM receipts, mileage (when and where and how far). Nowadays, some people use the camera on their phone to record the receipt. The problem is later organizing the information in one place. If you have good recommendations, post them in the comments below. (The Tax Act provides an article with ideas here.)

Now is the time to start trying to collect your 2024 expense receipts if you haven’t already begun. Trying to find that receipt next year might be a challenge. An empty shoe box may seem convenient at the time, but it creates a lot of work later.

Hobby-Loss Rules

If you are writing as a hobby or for something that only occasionally earns money, then you can only deduct expenses equal to the amount of your revenue. In other words, you can’t buy a submarine and claim it was for research for that underwater thriller you’ve been trying to write for years.

But if you intend to derive a living from your writing, you can show a loss (and maybe deduct that submarine!?). Proving intent is something judged case by case. If you show a loss in your writing business for five consecutive years, expect a red flag to appear in the IRS inbox. It is commonly understood that the IRS will accept that you are running a business if your writing work shows a profit in at least three of the last five tax years. But in an audit, the IRS can go back many years and determine if your deductions were valid. If disapproved, you will end up with a new, very expensive tax liability and additional penalties. Read these excellent articles if your business is in danger of being classified as a hobby:
“When the IRS Classifies Your Business as a Hobby”
“What Every Self-Published Author Needs to Know About Taxes” (an excellent article every writer should read)
“Hobby Loss: What it is, How it Works, Avoiding it”

Separate Your Home from Your Business

As much as possible, keep your household income and expenses separate from your income and expenses for writing. This can be as simple as keeping a separate bank account. (This is one way to prove intent; see above.) Then, keep records separately for the business using Quicken, Mint.com, or a spreadsheet.

If you work out of your home, consider exploring the home office deduction. But be careful. If you write occasionally from your home computer and that computer is used by other family members for things other than your writing business, you will likely not qualify. If that room in the basement is your office but is also a playroom for kids or grandkids, it may not qualify. Home-office deduction rules can change from year to year. What worked for you last year may not this year. IRS Publication 587 (this 34-page document linked here) spells out the 2023 rules for those of you in the United States.  Also, the IRS Form 8829 “Expenses for Business Use of Your Home” can be found at this link.

Resources

A good book is New Tax Guide for Writers, Artists, Performers and Other Creative People (Fifth Edition: 2016) by Peter Jason Riley. This is one of the few designed specifically for those in the arts.

Another good one is Legal Roadmap for Your Creative Business: A Strategy to Protect Your Assets Without Legal Confusion (2022) by Kiffanie Stahle. A little more up-to-date than the above. And covers all sorts of creative professions.

Another is the “Tax and Business Guide for Authors” course at The Christian Writers Institute. Currently it’s priced at $99 for the multi-session course by a tax professional. Be sure to join the Institute (it’s free) and see if there is a price reduction or a sale, or an updated version of the course. However, $99 is a good investment if it saves you as much or more in the coming year.

For many of you, numbers are either a toxic topic or the equivalent of hieroglyphics. But take this issue seriously. The writing profession is ultimately a business. Granted a business based in the creative arts, but it is still a business. Talk to a qualified tax accountant if you have questions. Never rely on the hearsay of another writer who gives anecdotal information at a writers conference. The IRS won’t accept the excuse that “Shirley told me it was okay to write off my Australian cruise because I was researching an article about Sydney!”

[This is a revised and updated version of a previously published post.]

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Category: Book Business, Legal Issues, Writing CraftTag: Book Business, Contracts, taxes, Writing Craft

Writing Conflict: How to Keep Your Protagonist on Their Toes With Angela Hunt

By Thomas Umstattd, Jr.on April 9, 2024
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Without conflict, you don't have a story. Find out how to add and layer the six classic conflicts to keep your readers reading.

Read moreWriting Conflict: How to Keep Your Protagonist on Their Toes With Angela Hunt
Category: Christian Publishing Show, Craft, The Writing LifeTag: Angela Hunt, Writing Craft

Presidential Quotes on President’s Day

By Steve Laubeon February 19, 2024
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Today is President’s Day in the U.S. Originally established in 1885 as a recognition of George Washington’s birthday (February 22), it was later expanded to include Abraham Lincoln and all other U.S. presidents. Some of the words of these leaders have stood the test of time. For example, from Abraham Lincoln: “Most folks are about as happy as they make up their minds to be.” “And in …

Read morePresidential Quotes on President’s Day
Category: Craft, Historical, Inspiration, TheologyTag: Inspiration, Writing Craft

The First Lines of Your Novel

By Steve Laubeon January 29, 2024
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The opening lines of a novel are like an introduction to the rest of the story. Some have become famous. “It was a dark and stormy night” is the well-known beginning of that struggling novelist Snoopy in the cartoon Peanuts. It is also the first line of Edward Bulwer-Lytton’s novel Paul Clifford (1830), as well as the first line in Madeleine L’Engle’s A Wrinkle in Time. (L’Engle admitted she …

Read moreThe First Lines of Your Novel
Category: Craft, Creativity, Writing CraftTag: Craft, Creativity, first lines, Writing Craft

Writers Learn to Prepare

By Steve Laubeon December 4, 2023
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Preparation is awfully important if you are planning to climb Mt. Everest. If you show up in a T-shirt, shorts, and flip flops, with a sack lunch, it is likely you will perish during the ascent. The same idea applies to the writer. Preparation is one of the keys to success. There Are No Shortcuts Despite numerous methods for efficiency, there is still no shortcut in writing a great book. It is …

Read moreWriters Learn to Prepare
Category: Craft, Rejection, The Writing LifeTag: Creativity, Rejection, Writing Craft

I Did Not Finish Reading Your Book

By Steve Laubeon May 15, 2023
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In the past year, have you started reading a fiction or nonfiction book and did not finish it? I have. Many times. There are a lot of reasons for this to happen. Here are a few examples. Fiction: I didn’t care about your characters. The plot fizzled. The story became ridiculous and unrealistic. It was too easy to put down. Or, in other words, it was forgettable. Nonfiction: It became …

Read moreI Did Not Finish Reading Your Book
Category: Craft, Creativity, Editing, Writing CraftTag: Books, Craft, Writing Craft

G Is for Great

By Steve Laubeon August 8, 2022
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“There are a lot of good manuscripts out there. What we want are those which are great.” I’ve said this many times but thought I should elaborate. Please note the following information applies mostly to nonfiction projects. When it comes to the nonfiction books that attract major publishers, I believe the author must have at least two of three “great” things: Great Concept Great Writing Great …

Read moreG Is for Great
Category: Book Business, Craft, Creativity, Platform, Publishing A-Z, Writing CraftTag: Concept, Platform, Writing Craft

My Editor Made My Book Worse!

By Steve Laubeon May 16, 2022
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by Steve Laube

You just received a 15 page single spaced editorial letter from your publisher. They want you to rewrite most of the book. But you disagree with the letter and are spitting mad. What do you do?

Or your agent took a look at your manuscript and told you to cut it in half to make it sellable. What do you do?

Both examples are true stories and illustrate the universal …

Read moreMy Editor Made My Book Worse!
Category: Craft, Editing, Steve, Writing CraftTag: Editing, Writing Craft

Cover Bands Don’t Change the World

By Steve Laubeon April 11, 2022
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by Steve Laube

I had been reading and thinking about creativity when I came across the title of today’s post as a chapter by that name in a book called The Accidental Creative: How to be Brilliant at a Moment’s Notice by Todd Henry (2011). It stopped me in my tracks. I knew he was right. A cover band plays other people’s music. Often it is a new interpretation of a familiar song and sometimes …

Read moreCover Bands Don’t Change the World
Category: Art, Craft, Creativity, Writing CraftTag: Creativity, Writing Craft

Today Is a Good Day to (re)Read

By Steve Laubeon March 28, 2022
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by Steve Laube

What was the favorite book you read, cover to cover, in the last year or so? Why is it your favorite? (It can be fiction or non-fiction. Faith-based or not.) Feel free to tell us in the comments about yours.

Read it Again

Now that you’ve identified the book. Read it again. As Vladimir Nabakov wrote:

“Curiously enough, one cannot read a book: one can only reread it. A …

Read moreToday Is a Good Day to (re)Read
Category: Art, Craft, Reading, Writing CraftTag: Reading, Writing Craft
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