Anything you sell should be claimed as income and if you're audited they will ask for all of your business and personal bank statements and you will have to explain any deposits into the account. All expenses (utilities, supplies, food, bedding, website, dedicated phone line, travel, shipping etc) can be deducted if you have receipts and proof of payment. Remember that the burden of proof for all expenses is on the taxpayer, so no receipt no expense if you're audited. Anything like racks and breeder snakes should probably be depreciated. You could probably use 179 for racks if you’re small scale. Breeder snakes should be treated like livestock and depreciated and then any offspring produced would have a basis of zero.