My wife makes kennel blankets for dog shelters across the us. They use them for blankets and do not sell them. What can she deduct?

[Carl]

Does your wife sell them?

[PGIBBY27]

She does not sell them.

[Carl]

If she gives them away to dog shelters, this sounds more like what the IRS might classify as a hobby. However, if the shelters she gives them to at no charge are registered charitable organizations, then she may be able to claim her materials cost as such, in the charitable donations section under the Deductions & Credits tab. That would preclude having to go through the hassle of completing a SCH C for what essentially is NOT a business per-se.

[PGIBBY27]

All the shelters are registered non profits

[SweetieJean · Accepted solution]

Her supplies, materials, and any shipping costs.