Newbie questions.... need advise on tax issues

Number of posts : 4 Registration date : 2008-11-25

Hi,
I am new here and in search of some information. My book will come out right around Christmas and I hope you can help me or point me in the right direction. I want to make sure I do things right from the beginning, so I don't have to go back to try to correct things I should have known.
Since there are several questions, I am just going to list them below:

Do I need to get a business license? Or do I just report any income from the book on my regular 1040A tax return? How about tax write off's related to the book. I normally just go with the standard deduction.
When I sell books on my own, not through the publisher, I need to pay sales tax, right? Do I need a sales license to do that?

I know there are more questions, but I'll start here.

Thanks for any help you can give me. I am in the state of California.
Carl

Hi Carl, and welcome to the forum.

Since tax laws differ from one area to another, I would strongly recommend that you consult an accountant. If money is a bit tight, you can often garner some advice through your local business development association, chamber of commerce or local library.

You would be wise to follow Pam's advice if you plan to sell books yourself. That varies from state to state. Royalty payments are just reported as income, but it can get complicated when you sell books yourself. If you do that, be prepared for some serious bookkeeping or risk problems down the road.

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