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Hobby income ...?

so I keep all my receipts from expenses, and cheques that I get from stores, which sell my crafts... and I declare that net amount as "hobby income" ..
then I started going to a few farmers markets during the summer ... where there is no paperwork involved ( nobody writes out receipts ...) how do I claim that amount ... (sometimes I break even, sometimes I don't ) .. .

There are other businesses that do not necessarily have receipts such as income from vending machines. Establish your records based on cash sales; list items and sale prices in your records. Claim mileage to and from markets, establish dates, and any fees for establishing a booth.

Technically you are supose to report the gross income on the front page of the 1040 as other income. The expenses from producing that income are included as misc itemized deductions subject to a 2% limitation. Because it is a hoppy you cannot not show a loss you can only take expenses to the extent that you have profit.

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