Wednesday, February 22, 2012

Working Wednesday: How to Deduct Self Publishing Costs

Have your cake and deduct it too.
Last week I was asked, "I self publish a book.  Can I deduct the costs of publishing the book?"

Answer:  Yes, over time.  You get a little deduction every time you sell a book.  At first, your costs are inventory.

For example, you publish 1,000 books and you pay $4,000 for the privilege.  You don't deduct the $4,000 yet, you have an asset, $4,000 worth of inventory (1,000 books that cost you $4.00 each).  When you sell, say, 800 of the books for $7.00 each, you have $5,600 in taxable revenue (800 x 7).  You also have a Cost of Goods Sold deduction of $3,200 (800 x 4).  So your taxable net is $2,400 (5,600 - 3,200).

Happy publishing!


  1. I would just eat that cake and let you do my taxes as usual, if I published a book, that is. :-)

  2. THAT is why having an accountant in the family is REALLY important. I think every family should have one ;-) PTL, my sister-in-law fills the slot for us....because while that post probably made sense to lots of people, I am baffled!