Posted by: polly w on 2008-07-22, 22:50:31
I work and have a home based type business (party plan) and do pretty well with it, as well as my regular “day job ” which I have had to cut back on hours because the home business is doing so well. I file together, using a schedule SE for my home business to take the deductions out such as mileage (a HUGE deductions) airfare and hotel for training events, and usually after the mileage is calculated I wind up owing nothing on my home based business. I also deduct postage and advertising expenses, and office supplies, demo products, and any losses such as damaged or broken items–I write them off. I do travel quite a distance to do my parties, several times a week. You cannot deduct clothing or dining expenses, or “fluff ” your deductions, it will set off a big red flag, so be very careful that you only deduct what you actually can legally.