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| Have your cake and deduct it too. |
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!
I would just eat that cake and let you do my taxes as usual, if I published a book, that is. :-)
ReplyDeleteTHAT 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!
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