As stated by the IRS:
A HOBBY is any activity that a person pursues because they enjoy it and with no intention of making a profit. People operate a business with the intention of making a profit. Many people engage in hobby activities that turn into a source of income. However, determining if that hobby has grown into a business can be confusing.
To help simplify things, the IRS has established factors taxpayers must consider when determining whether their activity is a business or hobby.
For more information on this topic, please click on the following link:
Here’s how to tell the difference between a hobby and a business for tax purposes
Converting a Hobby to Business
Now, it is VERY IMPORTANT to track those expenses one way or the other and have some sort of documentation for said expenses. Once you have been able to do this, you could deduct your hobby expenses as startup cost as prescribed by the IRS.
Here’s how businesses can deduct startup costs from their federal taxes
