When you discuss business out to lunch or dinner with co-workers and friends, your meal is 50 percent tax deductible. For that matter, so are theater and sports event tickets, and other expenses relating to entertainment focused on building relationships with prospects, retail customers and downline or upline Independent Product Consultants. (Remember, by definition, everyone is a potential prospect or customer of your Network Marketing business!)

Automobile mileage is deductible between your home-based business office and a meeting where business is discussed, such as the meals mentioned above, or an opportunity meeting -- or even a golf outing with friends who are prospects!

Travel is deductible -- be it to an industrial center or an island resort -- if the purpose is to hold an opportunity meeting, to discuss business with other travelers, or to attend a seminar. Your spouse's travel can even be deductible if their presence is helpful in closing the sale.

You can also deduct wages paid to your children for help in the business -- and if those children are under 14 and have no other sources of income, all wages under US $4,000 per year are tax free. It's a great way to help save for college with Uncle Sam's help!

You can pay with pre-tax dollars for expenses like braces, eyeglasses and visits to the doctor if properly structured through a qualified medical expense reimbursement plan -- this is easy to do with standard forms. (see resource box)

Home computers, fax machines, telephones, office supplies, and office furniture are also fully tax deductible. But there's more....

The IRS's only requirement is that you legitimately treat your Network Marketing business as a business -- not a hobby. That means regularly working your business.