Largely if you're a wagie you're stuck. Back in the 80s the government was cracking down on schedule C (small business) fraud, but they kept catching jews. Generally speaking if you own a business you can deduct pretty much everything and can essentially choose how much you want to pay in taxes. I recommend paying some taxes so you're less likely to get audited. A client of mine "forgot" about a customer that had paid him $200k over the course of the year, honest mistake of course.