Tax Write-Off?

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DoomieBey

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If someone where to create their own publishing company as a sole proprietor, self publish their own book, and donate some copies of the book to prisons, libraries, and churches, could those books be written off as tax deductions?

One avenue I was considering for my nonfiction book for soon-to-be released prisoners was to donate some to indigent prisoners, churches that have prison ministries, and prison libraries. If possible, it would conceivably be a win-win for everyone: Prisoners would get the book, agencies that assist prisoners would be able to do so, and I would eventually recoup the cost of the book itself.

What say you?
 

Gillhoughly

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Most pay-to-publish books lose money.

Most self-pub books do not sell enough copies to pay back the writer's investment to get it printed and shipped.

Giving away copies just puts you more into the red.

That in mind, yes, you can deduct those give away copies from your Schedule C form as "advertisement" along with your printing costs, transportation, utilities, etc.

You better have a day job, because this is a fast way to dig yourself so deeply into debt that you'll never get free.

You CAN try shopping your non-fiction book to appropriate publishers, who will see to nationwide distribution. None of that comes out of your pocket. Instead, they pay you money for your writing.

Or, you self-publish it through Lulu.com, and sell the book at low cost to your various venues. You can certainly buy a box of copies from them at cost to take around to local churches, etc., giving out a sample copy with ordering information.

Lulu is always going to be cheaper than any vanity house, but make sure your book is proof read within an inch of its life!
 

DoomieBey

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Thanks. I wasn't planning to make a profit by giving books away. Some books would be donated to some venues, but not enough to put me into financial ruin. It was these books that I was refering to. And I will be publishing with Lightning Source, which will [also] require me to have the book proof read within an inch of it's life.

Thanks a bunch, though. And I'll look into the Schedule C criteria.
 

Gillhoughly

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Glad to have helped.

I am self-employed twice over (writer and my day job) and the long form 1040A, the Self-Employment tax schedule SE, and Schedule C Profit and Loss from Business have been in my life for two decades now.

I tried doing it all with Turbo Tax a few times, but it just wouldn't work for my situation, so I do it old school. More deductions!
 

DoomieBey

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I've copied down the information about which forms I may need, so I can get a head start on understanding them. At least with the information that you've provided, I won't be as hesitant about donating a book to an institution that is helping others. I was also told that many institutions that are government-sponsored would be able to write purchases of my book off on their own tax information, so it would work both ways.

Thanks for your help:).
Glad to have helped.

I am self-employed twice over (writer and my day job) and the long form 1040A, the Self-Employment tax schedule SE, and Schedule C Profit and Loss from Business have been in my life for two decades now.

I tried doing it all with Turbo Tax a few times, but it just wouldn't work for my situation, so I do it old school. More deductions!
 

Tish Davidson

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Just make sure you get a a receipt for your donation that has the organizations name, address, date of donation, description of what was donated and if they are a not for profit, their ID number.
 

DoomieBey

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Ah, will do. Thanks. I figured to donate to a few churches that have Prison Ministries. Maybe somewhere between 10 - 15 books. Thanks again.
 
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