CCH TAX NEWS for April 26, 2007

- J
- John H. Fisher
  
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posted
17 years ago

Thu, Apr 26, 2007 5:34 PM

FEDERAL NEWS

House Passes War Spending Bill with Small Business Tax Relief

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Research Expenses for Book Were Start-Up Expenditures; Deductions Disallowed (Deward, TCS)

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STATE NEWS

Nevada --Sales and Use Tax: Legislation to Complete SST Conformity Passes Senate

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New York --Sales and Use Tax: Videos Delivered Electronically Over the Internet Not Subject to Tax

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Texas --Property Tax: Dismissal of Challenge to School Funding Bill Reversed

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- S
- Stuart A. Bronstein
  
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Vote on answer
posted
16 years ago

Sat, Apr 28, 2007 8:25 PM

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

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