author's research expenses

author's research expenses

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Compliments of the season to everyone.

One of our clients is an author.

He is in the process of researching/writing a book on Spain which is unlikely to be published for another two years.

We are aware of the "averaging" rules for income spreading but what if expenses are incurred without income?

He files simple "receipts and payments" statements as his writing income is not large these days (he is easing down on the workload in  later life).

In 2010/11 he spent quite a large amount of money traveling to & from Spain on this project. Are those expenses immediately deductible in the 2010/11 Tax Return, even though there's no income from the project yet, or do such expenses have to be held back, accumulated and deducted in the year when income arises from the book?

Of course, if it's a speculative, self funded / self driven, project it may never be published.

Any thoughts anyone?

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