Over the last six weeks, TAA Writing Gym members have had the opportunity to participate in six writing classes designed to help them with their writing, including creating goals, identifying their audience, getting their research organized, writing clearly, proofing and revising their work, and getting their work completed. Here is a takeaway from each of the six classes.
Reviewing your author contract: Planning for the future
The life cycle of a successful textbook reaches well past the life of its author, given that copyright law currently extends rights in a work to the life of the author + 70 years. That means not just your children, but even your grandchildren may benefit from the fruits of your labors. At the same time, for books—and in particular textbooks—governed by publishing contracts, it is important for both you and your heirs to understand your, and by extension their, rights and responsibilities.
The first step is to pull out your publishing contract. If it is a typical royalty-bearing contract, then you likely have rights in every revision in which you participate.
Authors may be eligible for proposed IRS regulation on 20% deduction for income from pass-through businesses
Based on proposed regulations issued by the IRS and Treasury that would add a new provision of the Internal Revenue Code allowing owners of sole proprietorships, S corporations, LLCs, or partnerships a deduction of up to 20% of the income earned by the business, writers will be eligible for the deduction, said Robert Pesce, an accountant with Marcum LLP.
“I read the 184-page Proposed Regulations,” said Pesce. “There is nothing in the regs that excludes authors from the deduction or indicates an author is a SSTB [Specified Service Trade or Business category, which is excluded from the deduction].Â
Proposed IRS regulations issued providing guidance on new 20% deduction for flow-through entities
The IRS and Treasury issued proposed regulations providing interim guidance on the new Section 199A 20% deduction on Qualified Business Income (QBI) introduced under the Tax Cuts and Jobs Act. The law contains a series of complex provisions, definitions and computations, many of which are addressed by the Service. The preamble to the regulations provides that taxpayers can rely on this guidance until such time that final regulations are issued.
This new provision of the Internal Revenue Code allows owners of sole proprietorships, S corporations, LLCs, or partnerships a deduction of up to 20% of the income earned by the business.
College textbook publishing: Royalties, risk, and reward
College textbook authors are motivated to write for many reasons. Some write with the goal of providing the optimum textbook for their students. Others are excited to share their approach to teaching a subject, or they simply enjoy the experience of translating research into practice. And, in some cases, the primary motive is to generate income.
Regardless of their motives, every textbook author must grapple with the same question: How can I achieve the best return on the time I spend writing a textbook, and how much risk should I accept in exchange for my sweat equity? To this end, there are several considerations authors should keep in mind regarding royalties as they negotiate a publishing agreement.
Will Cengage’s rising tide lift all boats?
Subscription models for reading materials are not unheard of in other industries, but they are a new model emerging within the higher education publishing industry. Late last year, Cengage announced Cengage Unlimited, a subscription based model offering access to its entire catalog of textbooks and related learning materials to college students for a flat price of $119.95 per semester calls Cengage Unlimited.Royalty structures under these models vary. Newer contracts provide broad leeway for publishers to allocate royalties on in a way they deem reasonable.
While boon to students, especially those assigned multiple Cengage texts, it has left Cengage authors wondering about the impact to their royalty earnings.