We filed our taxes the night before they were due (online, of course), and our saving grace as former freelancers was all the deductions. And we're talking legitimate home office and testing gear we use, not that copy of Oblivion for the 360.
The folks at Sound and Vision break down in detail how anyone can legitimately deduct home theater equipment with some moderately involved business-filing footwork coupled with detailed records. It's not too late if you've filed for an extension, but even if you've already filed, you can start collecting those receipts and filing for a business for '08 tax time following their steps.
I run a pair of websites related to video games and game reviewers. We do generate a revenue stream so I deduct any and all video game purchases. I also do freelance software development so computers and networking equipment also get deducted.
I do spend more than 50% of the time using these things for business though.
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