Samantha is employed full-time at the Anwar Corporation. She considers herself a freelance author during the time she is not working at Anwar.

Samantha is employed full-time at the Anwar Corporation. She considers herself a freelance author during the time she is not working at Anwar. She has published a few articles with the first one being published in 2015. Since her first publication, Samantha has spent most of her free time writing articles and submitting them to various magazines for publication. Some of her submission have been accepted for publication and thus, she has received compensation for her articles. She has met with editors to discuss her ideas and seek their insight on how to improve her acceptance rate. To date, she has not shown a profit in any year.

Samantha maintains a separate room in her house (10 ft. x 12 ft.) for the sole purpose of writing, and she wants to deduct a pro rata share of the utility bills and other home expenses. The room has a half bathroom attached (5 ft. x 6 ft.), which she uses when she is writing. She incurred other expenses associated with her writing career that amounted to $4,000 in 2017. 

Samantha is requesting our firm's assistance in preparing her 2017 tax return. In the past, she has not claimed the income or expenses associated with her writing career since she has not realized a profit.

You are requested to prepare a tax memo to Samantha on her tax situation and the services that our firm can provide to her.