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Many people take up hobbies, like jewelry-making or photography, just for the love of it and don’t expect to make money from their efforts. Most hobbies require some out-of-pocket costs. The good news is that the IRS lets you deduct a portion of your hobby expenses on your tax return. But you’ll need to show that you’re running a bona fide business to be eligible for more generous business tax breaks. First, ask yourself if your hobby is a recreational pursuit or a profit-making endeavor. Earning a living doing something you love is a natural goal, but you must be clear about your intentions to claim expenses come tax time. This doesn’t mean you’re prohibited from earning any money.
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