You are meeting with a tax client in your office and this client says: "I have a full$-$time job, but I also paint as a hobby. This year, I sold several paintings and made about $$4,000.$ I spent $$2,500$ on art supplies and a new easel. Can I deduct my expenses and reduce my taxable income?" How should you advise this client regarding their hobby income and expenses? Can the client deduct any expenses? What determines whether the clients' painting activity is classified as a hobby or business? Would you advise the client differently if the sales for the year were $$1,000?$