Writers and Authors: Tax Deductions for Self-Publishing and Freelance Writing — CPA Firm Near You, Montreal

Introduction

Writers and authors in Quebec — whether publishing books, freelancing for magazines, blogging, ghostwriting, or selling digital content — face unique tax opportunities and obligations. Income often comes from multiple sources, and self-publishing can involve significant upfront costs. CRA and Revenu Québec require proper documentation for writing-related deductions, and poor bookkeeping can lead to missed tax savings or reassessments. This guide explains how writers and authors can deduct expenses properly and how a CPA firm near you in Montreal can help make your creative career financially efficient and compliant.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, writers must report all writing income, including:
• Book sales (print and digital)
• Royalties
• Advances from publishers
• Freelance or contract writing fees
• Revenue from Substack, Patreon, or blog sponsorships
• Self-published eBooks or audiobooks
• Online course or writing workshop sales

Most writing income is considered self-employment income, unless under specific employment contracts.

Deductible expenses include:
• Editing, proofreading, beta readers
• Cover design and graphic design
• Printing, publishing, ISBN registration, formatting
• Software (Scrivener, Adobe Creative Cloud, grammar tools)
• Website and domain hosting
• Advertising, book launches, newsletters
• Travel for book tours or research
• Books and research materials (when directly connected to writing projects)
• Home office (properly calculated)
• Equipment: laptop, monitor, microphone, camera
• Professional dues (e.g., writers’ unions)

GST/QST registration applies when total taxable revenue exceeds $30,000 over four consecutive quarters.

Key Court Decisions

Courts have ruled that:
• Research materials must be directly linked to the writing project to be deductible
• Travel deductions require documented business purpose — recreational trips disguised as “research” are denied
• Home office deductions require exclusive and regular business use
• Royalties and advances are fully taxable when received
• Invoices and receipts must be detailed, not vague or estimated
• Expenses for personal creative exploration are not deductible

Judges emphasize the need for clear records tying expenses to specific writing income.

Why CRA and Revenu Québec Target Writers

Audits are common because writers often:
• Mix personal reading and research with business expenses
• Deduct travel without proof of business purpose
• Fail to track self-publishing costs properly
• Report irregular income across multiple platforms
• Miss GST/QST obligations
• Lack logs tying research expenses to books or articles
• Overclaim home office or technology expenses

Auditors compare bank deposits, royalty statements, contract agreements, and book sales with claimed deductions.

Mackisen Strategy

At Mackisen CPA Montreal, we help writers track income, deduct expenses safely, and stay audit-proof. We:
• Build a bookkeeping system structured for creative work
• Track royalties and platform payouts (Amazon KDP, Kobo, Substack, Patreon)
• Categorize writing expenses by project
• Prepare GST/QST filings for self-employed writers
• Optimize home office and technology deductions
• Create documentation linking research and travel to writing projects
• Prepare year-end filings and audit-ready packages

Real Client Experience

A Montreal nonfiction author deducted international travel as “research” but lacked documentation. CRA denied the expense. We rebuilt the research log with interviews, publication notes, and itinerary evidence — recovering part of the deduction. Another freelance writer missed years of GST/QST obligations; we filed retroactive registrations and minimized penalties.

Common Questions

Can writers deduct books they buy?

Yes, when they relate directly to a writing project or assignment.

Are travel costs deductible?

Yes, if the primary purpose is research or promotion and documented.

Are self-publishing expenses deductible?

Yes — printing, design, formatting, ISBN, editing, and software are deductible.

Do writers have to charge GST/QST?

Yes, once they exceed the $30,000 small-supplier threshold.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps writers and authors reduce taxes while staying compliant with CRA and Revenu Québec. Whether freelancing, self-publishing, or signing a book contract, our expert team ensures precision, transparency, and full audit protection.