As it seems apparent that taxes will increase to pay for Iraq, Afghanistan, Obamacare, stimulus packages, automotive bailouts, etc, I have been looking for every available legal tax deduction in my business and personal life. Maybe there are CPA's on this site that can supply some helpful advise. If you sell a litter of pups and claim the income, then you should be able to claim the training, supplies, food, birds, kennels, etc as expenses if this is a "business". How do others handle this situation? Has anyone been audited in this area?