| Can I write unpaid speeches off on my taxes? |
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Q: I have been asked to speak about my recently published picture book. The last four talks I gave were not paid. Can I take these unpaid for talks off my income tax? According to Michael Barkan of Barkan & Kasen, an accounting firm in New York City, you cannot deduct time you spend providing services without pay. However, you can deduct out-of-pocket expenses you incur while doing business. Be sure to keep your receipts. In dealing with schools, or other host organizations, he says that, if you’re not paid to speak, it’s preferable to have them arrange and pay for your travel, hotel and meals. The reason is that, if you submit a bill for your expenses and then get a reimbursement check, you have to declare it as income at the end of the year and then have to deduct the expenses incurred. This may add to the preparation cost of the tax return. My feeling is that, as you build a reputation, you should move quickly toward getting paid for your speaking time and getting reimbursed for your expenses. 3:4/00 |