Congrats on your home business. Just make sure you keep good records so you can substantiate all those deductions. Remember with meals and entertainment, you need to keep records of who you met with and what was discussed, plus time, date place, etc. You did not necesarily save all that money - advertising was a cash expense and your car and the gas was not free. One area you do come out is home office expense since a portion of RE taxes, insurance, utilities, upkeep, etc are deductable and you would have had those espenses even if you had no business - but again - follow the rules - the IRS looks carefully at such deductions. Again, make sure you keep good books. The IRS has been targeting Schedule C businesses in recent years