I sell physical review books for a certification in my professional field that are starting to pick up on Amazon, about $2000 per month. I am paying a publishing company to print my books and then I ship the books over to the Amazon warehouse to be a "fulfilled by Amazon" item.
My question is: From what I've been able to read online (although the nuances seem confusing), you cannot deduct the cost of the actual book publishing as a self-employed person. Is this correct? Can I deduct the shipping costs from the publisher if not the books themselves?
I guess I think it interesting that the IRS would say that you cannot deduct the costs of the books themselves since they are literally the product and not charge you taxes based on the profit of the books. I read a reference on a site that this is considered a "reproduction and distribution expense" but can't figure out if this means anything useful as far as a tax deduction.
Can anyone clarify?