Do you run your business out of the home? If so, you can deduct up to 25% of house expenses (taxes, utilities, etc) unless that's been taken away.

No, it has not been taken away, but we only deduct 1/7 of the expenses - 7 rooms not counting the bathrooms - because that was how my accountant told me to do it. It must have been a good idea because we have never been audited and home office deductions are a red flag to the IRS.

And, as an 'S' corporation, you're already deducting business expenses from your total income, are you not?

Yes. Of course. However, as you said, they are BUSINESS expenses - not personal ones <s>. If I worked for someone else full time, I wouldn't be paying any of those expenses - like $1500 per month for our health insurance. Also, since we both drive company cars, we get taxed on our personal use of them.

**Not trying to be provacative, just asking**

I didn't think that you were trying to be provocative <s>.