Hobby or Business – Which Is Better For Me?

If you produce hobby income, you can only deduct a tiny portion of your expenses as part of miscellaneous itemized deductions on your tax return. Because most folks take a standard deduction allowed by the Internal Revenue Service and don’t itemize, they don’t even get this small amount. In other words, you declare hobby income without the benefit of deducting expenses the way a for-profit business does.

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