Hal_Al
Level 15

Deductions & credits

Although hobby "expenses" are no longer deductible, the "cost of goods sold" (COGS)is deductible (not subject to itemizing).  You reduce you reportable income by the COGS. 

 

Reference: https://philadelphiacpa.com/hobby-losses-tax-loophole/#:~:text=Subtract%20ending%20inventory%20(actu....