Hi,
I wrote a book that was self-published this financial year. My total outlay was $13,000, which included the printing cost of 150 of copies of my book.
I personally sold 100 of these books to friends, family and acquaintances during this financial year and received $2,000 in total sales. Most of sales were using the Square app on my phone.
The book is listed for sale on Amazon, although my first royalty payment from Amazon will not be until July 2026 (i.e. next financial year). (FYI Amazon prints books on a print on demand basis, so I'm not supplying any physical books to Amazon).
At some point in the future, I believe that I will recover my initial publishing costs, from Amazon sales and my personal book sales. Although it may take five years to recover my costs and then start making a profit from this book.
Just wondering how I should record this on my tax return. Can I quarantine this loss (i.e. $11,000) on this year's tax return and roll over the loss to future tax years, and offset future income against this loss?
Please let me know. Thanks for your help.
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