If an activity is characterized as a hobby,expenses are deductible only to the extent of income from the hobby,subject to certain ordering rules.

Question

Quizplus · Accepted Answer

According to the IRS, expenses from a hobby activity are only deductible up to the amount of income earned from that hobby. Any excess expenses cannot be deducted against other income or taxes. This is subject to certain ordering rules, which means that certain expenses must be deducted before others, but ultimately the rule remains the same.

If an Activity Is Characterized as a Hobby,expenses Are Deductible