Congratulations to every author who accomplishes this. You really have earned your royalties. For sure, the “Taxman” is as happy as you are. But you also had expenses and should be able to deduct them from taxes that you pay for royalties. For sure you will write more books, so it is almost natural to register as publisher and deduct even more expenses:
• Computer, printer, fax, scanner, copier and other office equipment
• Furniture, carpet, blinds, cleaning material, cost for a maid etc.
• Telephone, cell, wireless, cable
• Insurances, banking fees
• Software and computer training
• Travel cost such as hotel, car, taxi, plane
• Car payments, car insurance, gas, repairs
• Webhosting, Domain name, web designer
• e-Book conversions, cover design, editing, copy editing, layout and desktop publishing
• Writers and publisher conferences
• Rent / Mortgage and Heating / Electricity etc. for the space you work in – and storage for your books if you go the “paper route”
Valuable tips to set up your own publishing company and take the tax breaks are described in detail in Dan Poynter’s book “Self-publishing Manual”. More small business advices, loaded with information how to save taxes, can also be found in these Amazon books:
• 101 Tax Saving Ideas
• Lower Your Taxes – Big Time!
Learn more about the process to become a small publisher from these blogs & web sites:
The advantages of business ownership for independent authors far outweigh the work involved. And deciding to write a book means, that you already have decided to be in business. Go for it! What holds you back?