text: Check with the I.R.S. and the Small Business Administration for some free advice.\nYou can deduct business expenses like advertising and travel.  Check out Allocation of Income and Expenses, schedule P form 5735 at:  http://www.unclefed.com/IRS-Forms/2005/f5735sp.pdf.  This is the basic form you are looking for.\n\nYou can deduct any equipment that is used exclusively for the business, like a file cabinet, which can be depreciated, usually over seven years, where you recover the expense of the equipment over time.  You can also deduct the expenses for your car when used to travel for the business.  You must keep a mileage log to qualify.  If you use a computer and deduct it then that computer must be devoted entirely to the business, any personal programs on it will cancel this deduction\n\nYou can deduct part of your home expenses for the area of the home that you use exclusively for your business, but this is a red flag for the IRS, and can force an audit.  If you want this deduction then make sure that part of the house is used only for business.  I knew an Amway dealer that had a system of shelves in the garage for storing his stock.  That would be a legal deduction, and you will may need some space to store stock and samples.\n\nYou will need to use the 1040 tax form and remember to pay the self-employment tax (Check out lines 13, 24, 27,28, 29).  You will need to fill out Schedule SE Self-Employment Tax (instructions are found at:  http://www.unclefed.com/IRS-Forms/2005/i1040sse.pdf the form itself is found at:  http://www.unclefed.com/IRS-Forms/2005/f5735sp.pdf)  Use Form 8829 Expenses for Business Use of Your Home.\n\nThese forms are pretty daunting so you might want to find Tax Preparation software, make sure it can handle a small business.  Or you might want to go to a Tax Perparer like H&R block.  I recommend the later because they will know what deductions are legal and accepted by the I.R.S.