My wife has income from a flea market. Are we still allowed to declare hobby expenses for 2018? We have record of expenses but no receipts.

[HobbyHusband]

We were under the impression that tax laws changed and hobby expenses were no longer allowed as a deduction.

[Opus 17]

Does she routinely make a profit? She might want to treat the activity as a business.  

[Opus 17]

Does she routinely make a profit? She might want to treat the activity as a business.  

[TaxGuyBill]

If this activity is profitable and has been going on for more than one year, that definitely sounds like a business, not a hobby.

[Hal_Al · Accepted solution]

That is correct. In the past hobby expenses were only deductible as a misc. itemized deduction, subject to the 2% of AGI threshhold.  All such deductions were eliminated with the new tax law.

She may still deduct the "cost of goods sold". For example, if she buys a lamp for $10 and sells it at the flea market for $15, she only reports $5 of income. If she sold a used lamp for $15, from your household, that you bought many years ago for $25, she does report any income.  But she cannot deduct the "loss" on the sale.