How to Deduct Your Hobby Expenses Legally in 2026

Lucas and Luna tackle the tricky IRS rules on hobby versus business income. Using the real example of a freelance photographer who turned her weekend gig into a profitable side business, they explain the key tests the IRS uses to decide if you can deduct losses. They walk through the nine-factor 'profit motive' test, the difference between a hobby loss and a start-up loss, and how the Tax Cuts and Jobs Act changed the rules around hobby expenses. By the end, you will know exactly what documentation you need to keep your side hustle deductions safe from an audit. Plus, a quick look at how the IRS uses data analytics to spot hobby-loss patterns in 2026. #HobbyLoss #IRS #SideHustleTax #ProfitMotive #BusinessExpenses #TaxDeductions #FreelancerTax #ScheduleC #TaxAudit #NineFactorTest #Finance #FexingoBusiness #BusinessPodcast #TaxStrategy #SideHustle #SmallBusiness #TaxTips2026 #HobbyVsBusiness Keep every episode free: buymeacoffee.com/fexingo