SantinoD
Expert Alumni

Deductions & credits

Generally, if the IRS classifies your business as a hobby, it won't allow you to deduct any expenses or take any loss for it on your tax return.

 

If you are selling those items with the intent to make a profit, you can report your income and deduct expenses on Schedule C. If your business is legitimate, keeping accurate and extensive records could help prevent the classification of your business as a hobby.

 

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