Is My Hobby Really A Business? “Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.” (IRS Pub FS-2007-18, April 2007) You have been crocheting blankets for years.  It is a relaxing activity that you really enjoy.  People have offered to pay you to make one for them.  You think, “Why not?” Do you intend to start making blankets (or other items) for a profit?  Or, do you just want to have your friends reimburse you for the cost of the materials?  If you don’t intend to make a profit from your sales then you are engaging in…