How to avoid turning your publishing endeavors into a money pit!

By Ed Cobleigh

Keep Score

• Measure Results, Money Out Versus Money In
• Spreadsheet, Journal, or Shoe Box
• Monthly Results
• Track All, Repeat All, Expenses
• Year-end Results, Uncle Sam is Watching

Taxes-Uncle Sam Wants You!

• Hobby or Business, Uncle Sam Doesn’t Care
• Marketplaces (CS, IS, KDP, Audible, etc.) Will Report Income on W-2’s
• Document Everything
• Keep Notes
• Ledger
• Print Spreadsheet
• Copy Checks, In and Out
• An Audit Unlikely Unless You Screw-Up Big Time or Forget a W-2

How the IRS Can Improve Your Cash Flow

• Itemize Your Deductions
• Make a Profit 2/5 Years to Qualify as a Business and Deduct Expenses
• Shift Expenses @ End of Year
• Revenue Scheduling
• Deductions from Income
• All Book Related Expenses; Agent’s Fee, Editing, Cover Design, Printing, Review Copies
• Ancillary Costs; Postage, Conferences, Mileage (.54/mile), Software, Ink, Reference Materials, Memberships, Marketing Costs,
• Meals, Internet Access, Computer Hardware?
• Home Office: Must be dedicated, % of Home Costs
• Key to Success—Are you trying to make a profit? Did you?

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