My husband and I are co-authors. We receive payment from a publisher which we declare on our tax returns - 50% each. Our books have been published by US publishers and UK publishers. These publishers have deposited copies in their national libraries as required in their country - Library of Congress or British Library. Because we are South Australian/Australian we are advised to also deposit a copy of each of our books to the State Library of SA and The Australian National Library as required under the Legal Deposit scheme. This we have happily done. My question is whether we can claim the cost of this process on our tax returns, cost of books and cost of postage? Many thanks for your help!
All replies
Hi @CWH,
Yes, you can claim the cost of books and postage as a tax deduction, where they're expenses you've incurred in earning your income.
The legal deposit copies are required as part of your publishing activities. Both the cost of the books and the postage to send them to the State Library of SA and the National Library of Australia would be deductible.
Since you and your husband are declaring the royalty income 50% each, you'd each claim your portion of these expenses in the same proportion.
Just keep records, including receipts for the books and postage. Plus, anything that shows that these costs relate to earning your royalty income.
Thank you so much for this advice it is very helpful.
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