All of this information is great.
But remember your deductions are only as good as the person doing your audit. If you do not keep INCREDIBLE records then 1 small slip up can result in all of your deductions being wiped out, resulting in taxes, penalties and interest.
Bottom line is if you get a 1099 from paypal it is WELL worth your money to get your taxes done professionally.
Thin skinned megalomaniacs shouldn't post on message boards.