"Can I take a tax deduction for my car, a writers conference, the books I read, etc.
?" Writers ask me questions about what they can deduct on their tax return all the time.
Like all Americans they wish to legally reduce their tax burden every way they can.
There are several ordinary expenses that a writer use to reduce their taxes.

• Advertising and promotional costs including your website, ads, bookmarks and business cards that serve as advertisements.
  
• Commission and fees.
  If you have an agent who is paid a commission, record it here.
  Additionally, some authors prefer to put their PayPal or shopping cart fees from book sales in this category.
  Alternatively, the IRS also allows merchant fees to be included in cost of goods sold.
  Some authors prefer merchant fees to be visible so they know what they are spending on merchant fees.
  
• Car expenses.
  Use a mileage log or a calendar to record trips with a business purpose.
  The IRS requires the records be kept contemporaneously, meaning you should not rely on your memory.
  Estimates are not allowed; there must be actual mileage records.
  The IRS sets the per mile rate and adjusts it annually.
  For example in 2011 the mileage rate for business miles was $.
  51/mile for January through June and $.
  55/mile from the latter half of the year..
  
• Contract labor for your editor, graphic designer, or anyone you hire as an independent contractor.
  
• Depreciation applies to purchases of computers, furniture or equipment that will last longer than a year.
  Depreciation is an accounting term meaning that the value of the equipment is deducted on the tax return over several years.
  A Section 179 expense means that the full cost of the equipment is deducted in the year it was purchased.
  Your CPA can determine whether you should depreciate your equipment expense or deduct all of it as a Section 179 expense.
  Depreciation calculations can be complex.
  Give your CPA information on your purchase including the cost and the date of purchase and he or she will calculate the correct deduction to use on the tax return.
  
• Insurance on your inventory or professional liability insurance on your business.
  
• Legal and professional services to lawyers and accountants.
  Other professionals are listed under contract labor.
  
• Office expense including postage, paper, ink, envelopes, etc.
  
• Taxes and licenses including sales tax paid to your state from book sales and business or vendor's licenses.
  
• Travel, meals and entertainment for business including writer's workshops and conferences.
  Deduct the mileage or car rental, lodging and one-half of the meals spent while on a business trip.
  If you take your spouse or family, only the portion for you, the business owner, is deductible.
  
• Utilities such as telephone, cell phone and internet service charges.
  The first phone line into a home is considered a personal expense and not deductible as a business expense.
  See my caution below about mixing personal and business use of telephones and the internet.
  Only the business portion is a tax deduction.
  

Other Expenses.
Some common business expenses for authors to include in this category include:

• Books, magazines, and subscriptions.
  Any publication that helps your writing and publishing business or used in researching your book is deductible.
  The cost of this book is a tax deduction.
  
• Professional organization dues.
  
• Professional development to make you a better writer including classes, conferences and writers workshops.
  
• Fees to purchase an ISBN, a Library of Congress Number (LCCN) and bar codes, for your self-published book.