Edward has always enjoyed Sailing. In 2018, He entered several reqattas and managed to win prize money of $1700,00. His cxpenses associated with the regattas exceed $ 23,000.00. Which of following statements is correct.?

Edward may absolutely not deduct any of these expenses

Edward should only deduct 50% of these expenses

Edwards expenses far exceed his winning. Therefore he needn't worry about reporting his winning on his 2018 income tax return.

Since Edward does not carry on his activity to make a profit he cannot use a loss from the activity to offset other income .