My spouse is a one time author having spent 2022 writing a book which he self published in 2023. This is a one time book, not ongoing. He incurred expenses such as editing/formatting, recording studio, book cover design during 2022, with royalties starting to be received in 2023 after publication. Since this is a one time endeavor, does Schedule E allow him to deduct any expenses associated with the book writing and publication? On the income side, it looks like I select intellectual property for the 1099-MISC royalty income but what do I select to enter any expenses? I don't see a line for one time book expenses. The expenses incurred in 2022 are higher than any royalties he received in 2023. Can we deduct an amount equal to the royalties for 2023? I tried putting an expense amount equal to the royalty in the Miscellaneous expense line and when I selected done with Royalty, it said I had a profit and something about business expenses belong in Schedule C. Does this mean we can't deduct any expenses?
I am using Turbotax online. I have not yet paid for the product so I'm not sure which version I will end up purchasing.
