It is true that hobby expenses are not deductible, and that means all the cost of the goods. They used to be deductible as miscellaneous itemized deductions, but that is not allowed under the new tax laws.
Fortunately you have a profit this year, so you may be able to covert the activity to a self-employment business which would allow you to deduct all expenses necessary and ordinary in your business.
However, you would have to have a profit motive to do this, which could be evidenced by reporting a profit in three out of five years going forward.
So you could report your sales and deduct your expenses this year if you report the activity as a business. But to do so, you would have to demonstrate a profit motive in the years going forward as evidenced by generating profits.
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