That's all part of it. If you can show you are in it to make $ first you are ok.
Example can't be answered as given. If a business yes the 5,000 is right. If a hobby you can only claim if you itemize. Its aslo subject to 2% AGI limit in addition. If you make 100k that means only the hobby expenses exceeding 2k (18,000 in your example) is deductible.
My HOF PC:
Need Bidwill, Mara, Carr, Chamberlin, Pollard, Hewitt