INTEREST
Hobby vs. Business Expenses
It is important to determine whether your activity is a hobby or a business.This can be a complicated matter, as often sole proprietors slowly build their businesses over an extended period of time or pursue a longstanding passion that has brought in some money. The distinction between business and hobby is generally made based on how much profit your activity generates and is important to consider because business expenses are generally fully deductible, while deductions for hobby expenses will usually be limited.