Are unpaid royalties a tax deduction?

October 16th, 2012 → 3:33 pm @


I have a question. I have a client who is an author. She has a
publishing company. The publishing company give sample books on her
behalf to promote her book.

Question: Since the author did not receive a royalty for the book that
was given as a promotion sample, can the author write off the amount
of royalty that the she did not receive?




Thanks for contacting me!

Good question.

The author cannot deduct income she did not receive.

She can only deduct expenses related to her business.

She should  be happy that the publishing company gave her some books for promotional purposes!


Carol Topp, CPA

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