> Then you can hire a family member, deduct home office expenses and even if you lose money operating the business, you'll save money on taxes. This entire sen

> Then you can hire a family member, deduct home office expenses and even if you lose money operating the business, you'll save money on taxes. This entire sentence is “top things the IRS has seen before and will not be amused by.” Sure, you can put this stuff on your Schedule C and get more money in your refund, but just wait until the IRS audits you in 5 years and determines that your family member is not engaging in activities that make them a legitimate employee, your living room is not a home office just because you have a desk in the corner, and since you’re making continuous losses and not operating in a “businesslike manner” your ‘business’ is actually a hobby; and then sends you a bill for back taxes plus interest and penalties. (Sure, those are all actual deductions, but if your mindset is “legal tax evasion” and not “this is a business expense” you’re probably not qualified to take them.)