Is That Deductible? Lessons From My Wife’s Scrapbooking Business
Mar 24, 2025
My wife Ellen has always been a creative powerhouse. For decades, she has poured her heart into preserving our family’s story through scrapbooking. From capturing our kids’ milestones to highlighting our family travels, she’s lovingly created hundreds of scrapbooks that line the walls of our home. But over the last few years, I’ve witnessed something extraordinary: Ellen’s transformation from a hobbyist to a micro-entrepreneur.
Her business, Scrapping in My Sleep, didn’t start as a formal venture. For years, it was a passion project—she hosted scrapbooking nights in our home, taught classes, and created community among other women who found joy in creativity. But now, she’s taking it up a notch. She's selling her handcrafted products online, launching YouTube tutorials, and investing in her future as a small business owner.
And of course, that classic entrepreneurial question has emerged: “Is that deductible?”
From Passion to Profit: Ellen’s Scrapbooking Journey
For as long as I’ve known Ellen, her love for storytelling through paper, stamps, embellishments, and carefully chosen photos has been a defining part of who she is. Scrapbooking gave her a voice, a creative outlet, and a meaningful way to express her love for our family and her faith.
Over time, it became clear that what Ellen was doing was more than a hobby. Her collection grew—not just in albums, but in raw materials. Today, she has over $30,000 in scrapbooking inventory, and thanks to Amazon’s tireless delivery elves, that number seems to grow by the day!
I watch with admiration as she invests herself into growing her brand. She’s creating and packaging handmade items, refining her YouTube channel, learning how to list products online, and diving headfirst into this new business phase. I’m in awe of her skill, her attention to detail, and her ability to make something beautiful out of chaos.
Taking Over the Empty Nest (One Bedroom at a Time)
Our home has always been filled with laughter, noise, and the beautiful chaos of a large family. But in recent months, it’s shifted into a new phase—our children are launching into the world. One son has moved out, our daughter is preparing for her wedding, and our other daughter is heading to Indianapolis for her nursing career.
Ellen has seen the changing tides—and wisely seized the opportunity. She’s been converting their rooms into designated areas for Scrapping in My Sleep operations. Inventory shelves, cutting machines, shipping supplies, and a recording station now fill the once teen-filled spaces.
To our kids, it may feel like a land grab. But to Ellen, this is her business expansion. And to me? I just smile. I absolutely love seeing her take up this new space—physically, emotionally, and professionally. She’s not just “filling time”—she’s stepping into her own as a businesswoman.
A Conference, a Sister, and a Tax Deduction
This week is a big one: Ellen is heading to a week-long scrapbooking business conference in Canada. It’s a dream opportunity where she’ll not only expand her skills, but also build meaningful connections with other creators and small business owners. Best of all, her sister—who lives in Canada and whom she only sees a few times a year—is joining her for the conference.
It’s a “girls’ week” that doubles as professional development—a win-win in every way. And yes… it’s tax deductible.
Let’s break down some of the legitimate deductions that apply to Ellen’s business and might apply to yours too.
What’s Deductible in a Hobby-Turned-Business?
If you’re moving from hobby to legitimate business—like Ellen—you need to start thinking like a micro-corporation owner. That means tracking expenses, understanding IRS guidelines, and making a profit motive clear.
Here are just a few of the deductible categories relevant to her business:
✅ Inventory and Supplies
Her $30,000+ worth of paper, embellishments, adhesives, and tools? If they’re used to create products sold in her business, they’re deductible as cost of goods sold (COGS).
✅ Business Equipment
Machines used for die cutting, embossing, printing, or filming content are business assets. If they are used exclusively for business purposes, they can be depreciated or deducted based on IRS guidelines.
✅ Home Office Expenses
As she carves out studio space in our kids’ old rooms, those dedicated areas may qualify as home office deductions, including a portion of utilities, internet, and home maintenance costs.
✅ Business Development
The Canadian scrapbooking conference? 100% deductible—including lodging, mileage (or flights), registration fees, and meals (up to 50%). Why? Because it’s an event primarily focused on growing her business.
✅ Software and Online Tools
From video editing software to eCommerce platforms and cloud storage, all of these digital tools fall under deductible business expenses.
✅ Marketing and Advertising
Any money spent on YouTube ads, branding materials, product photography, or SEO services is deductible under advertising and promotion.
✅ Professional Services
If she hires a designer, accountant, or even pays a family member (like me!) for business support—those can be valid business deductions.
Of course, to stay compliant, Ellen will need to keep accurate records, have a separate business bank account, and file proper business tax returns. But the rewards—financial and emotional—are worth it.
Why This Matters to You as a Physician Entrepreneur
You might be wondering what Ellen’s scrapbooking story has to do with you as a physician. But here’s the thing: physicians are creatives too. You may have clinical expertise, but you also have ideas, side gigs, consulting opportunities, content to share, and services to monetize.
Maybe you’ve considered starting a side business, launching a virtual practice, or offering a niche health product. You’re not alone—and you don’t have to go it alone.
Ellen’s micro-business reminds us that:
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Every legitimate business—no matter how small—has tax advantages.
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Monetizing your passion is possible with a plan.
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A business doesn’t need to “replace your income” to be meaningful.
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Fulfillment often comes when we step into our full potential.
Let’s Build Your Micro-Business Together
If Ellen can transform a lifelong hobby into a purpose-driven micro-enterprise, you can too. Whether you want to launch a virtual clinic, monetize a health education product, or build a consulting side hustle—SimpliMD has your back.
✅ Start with a Personalized Micro-Business Consult
Ready to explore whether your side gig or idea qualifies as a deductible business? Book a 1-on-1 consultation for only $99 and receive a full year SimpliMD membership—a $2,500 value packed with templates, legal guides, community access, and more.
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📘 Take the Practice Without Walls Course
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🧠 Grab the SimpliMD Business Plan Suite
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Want More Physician Entrepreneur Inspiration?
Check out more stories and strategies for building your micro-business at my blog, The Independent Physician. Some popular reads include:
In closing, I’m so proud of Ellen. Watching her step into entrepreneurship—at her own pace and in her own way—brings me joy. I love seeing her fulfilled, challenged, and connected to something she truly loves.
You have passions too. You have skills that deserve to be shared. Maybe now’s the time to ask yourself: “Is that deductible?” And more importantly: “Is it time to go all in?”
