Hobby or Business?
I'm really hoping someone here can point me toward some good information! I've read through info at the IRS website, but I'm having trouble figuring out the differences between a "business" and a "hobby". I make baby blankets and scarves and other things both as gifts and to sell. I've had a table at a few craft bazaars and markets but I don't usually make a lot of money. I'm not doing this just to make money, I'm doing it because I love crocheting! But at the same time, I kinda need to sell some things so that I can afford to get more yarn...
Therein lies my dilemma - yes, I'm trying to make money, but at the same time, I'm not really doing anything "extra" in order to make a profit. I'm not taking tax deductions, I'm not really advertising (other than the shows I go to, but then I'm advertising the show, not my stuff specifically), and I'm certainly not making any kind of decent "hourly rate".
I have looked into making it a business, but I don't think it would be profitable and I'm afraid that focusing on the "business" aspect will take all the fun out of it. Help!!