■ How can I be sure my coin collecting financial transactions qualify as a hobby to the IRS?
The IRS defines hobbies as activities pursued for pleasure, not for profit. You must still report the income received from pursuing this hobby, although by listing the associated expenses as miscellaneous itemized deductions, you may have a loss rather than a profit. Hobby losses cannot be used to offset income from other sources.
■ Has it ever been possible to deduct hobby expenses, or has it always been this way?
