I am a sole Proprietorship in California. Where can I find a list of acceptable or not acceptable business expenses I am allowed to deduct from my income. Do I need to reimburse myself in anyway before reporting expenses?
It's called the "Home Office Deduction." It's based on the percentage of square footage in your home that you use exclusively for business. Use IRS Form 8829 to claim it, or let your tax accountant plug in the numbers for you when she does your return; her tax software will make the calculations and generate the necessary paperwork automatically.