Is this a business or hobby?

[jeep_girl_007200]

I started selling crafts in 2016, using supplies that were purchased a few years ago.  How/where do I enter the income?  Also, is this considered a hobby or a business?

[TomD8]

Here are the IRS rules for making that determination:  https://www.irs.gov/uac/business-or-hobby-answer-has-implications-for-deductions

[Hal_Al]

Selling crafts can be either a business or hobby,  depending on the details of the activity. One key factor is your intent. If you intend to make money, you have a business.
Here's another IRS reference:  https://www.irs.com/articles/tax-tips-people-who-earn-income-hobby

The question you didn't;t ask is: do you get a deduction for the "supplies that were purchased a few years ago".  The  answer is yes. The amount you get to deduct is the lesser of cost or fair market value on the date you "converted it to business/hobby  use".
Where do you enter it, in TurboTax (TT)? After YOU decide whether you have a business or hobby, type either business income or hobby income in the find box. Then click jump to.

[jeep_girl_007200]

Thank you!  I didn't have any receipts for the supplies, so I didn't think they could be used as a deduction.  I guess I should have done more research on the tax situation before I started trying to make a profit.  Thanks again!