Lord knows, tho...a lot of my good models have never worked an honest day's labor "on the books" and by year's end half of them have moved, no forwarding address. But as long as I mail a 1099 I can deduct them. Like I said, just keep good expense records. You can deduct a lot of things if they are business-related in some way. I stick every receipt I get all day long in my back pocket, then come home and enter 90% of them into Microsoft Money in business-related categories.

* Have a drink with a model - that's a business meeting.
* order a pizza during a webcam session - Business meal
* Model "borrows" $20 for Pampers for his baby's mama - add it on to his compensation