If you create art and try to sell it, can you deduct your related expenses? If your art is just a hobby then you can deduct expenses up to the amount of income, but if it is a business then all related expenses are deductible even if your expenses exceed your income. In a recent tax court case, Crile v. Comm’r, T.C. Memo. 2014-202 (10/2/14), the IRS disallowed expenses in excess of income since the activity had never generated a profit....