Question
In October 2019, Jacob signs the book publishing contract and SilverPublishing releases a book entitled In the Heart of the Sea with the short stories
In October 2019, Jacob signs the book publishing contract and SilverPublishing releases a book entitled "In the Heart of the Sea" with the short stories that he has written in his spare time. He is not concerned about whether the book is a commercial success however he is so pleased to see his work being published. To celebrate he goes on a cruise (costing $5000) with his wife to New Zealand and Antarctica in November 2019. His wife asks him if he can claim the $5000 expense as a tax deduction. Jacob is not sure, however he is not bothered with keeping records of his expenses in any case. He does not anticipate publishing another book of short stories. Instead of a lump sum payment for his intellectual property, Jacob receives a percentage of the sale price of each book. During the 2019/20 year of income, he received $2500 from sales of his book
Does Jacob carry on a business?
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