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Deductions & credits
So you are correct, with everything you have described, it does sound as though your wife's activity is a hobby. However, with that said, she cannot deduct expenses. She can only deduct the cost of goods like @Leonard Smith stated. The purse or other items she is buying is her cost of goods. She cannot deduct her selling expenses such as the shipping costs.
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March 21, 2022
1:34 PM