If there is no inventory of books, then the $15,000 sounds like it is a business expense. This assumes that the 15K fee is not an advance payment to the publisher and that the self-publishing of the book is a business venture.
If the 15K is an expense you paid to publish the book, and the publishing of the book is a business venture, you can take it on your Schedule C against the income you earned. You will have a loss for 2019.
To enter the Self Employment information into TurboTax:
- While signed in and working in TurboTax
- Click on Federal in the left-hand black menu
- Click on Income and Expenses
- Scroll down and click on Show More next to Self Employment
- Click on Start or Revisit next to Self Employment Income and Expenses
The IRS does differentiate between a business and a hobby. Unfortunately, there is not a bright-line test for the difference. The IRS uses nine factors to make the determination:
- Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.
- Whether the time and effort you put into the activity indicate you intend to make it profitable.
- Whether you depend on income from the activity for your livelihood.
- Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business).
- Whether you change your methods of operation in an attempt to improve profitability.
- Whether you or your advisors have the knowledge needed to carry on the activity as a successful business.
- Whether you were successful in making a profit in similar activities in the past.
- Whether the activity makes a profit in some years and how much profit it makes.
- Whether you can expect to make a future profit from the appreciation of the assets used in the activity.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
