Ultimately an art in my opinion, but only those that succeed in a business sense are the ones that can keep pursuing their art.
It is an art but you don't have to succeed in business to purse it. However, to enjoy certain tax advantages you have to have the presence of a profit motive.
When you enter into an activity expecting to make a profit you can deduct all the expenses from the activity as a deduction from AGI.
In contrast, all the expenses from an activity in which a taxpayer did not have a profit motive (a hobby), can only be deducted as a miscellaneous itemized deduction (subject to the 2% rule) to the extent of income from the activity. ~oo~
Also, unlike hobby losses, losses from a profit activity can be used to offset other income(like from the koolaid stand

), so you really want to make every effort to treat it like a business.
The burden to prove the presence of a profit motive lies with the taxpayer but once you show a profit in any 3 of 5 consecutive years, the burden of proof shifts back to the IRS.
Factors the IRS considers in deciding whether an activity is a hobby or a business are:
1. The taxpayer's expertise in the area e.g. ~oo~ see - Stop calling yourself a PRODUCER
https://homerecording.com/bbs/showthread.php?t=274974
2. Whether you keep separate books and records for the activity
3. The profit loss ratio
4. The amount of occasional profits
5. The relative amount of pleasure the taxpayer derives from the activity
6. The extent you depend on the financial support
7. The time and effort you devote to it
8. Your past success with other activities
9. Your expectation that the property used in the activity will rise in value.
One final thought, when you use a standard deduction, all hobby loss deductions are lost. Thus "all" of the gross income from the hobby is taxed.
