Racing & taxes??
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From: on the dyno tuning in MD
Racing & taxes?? Not really a tech question, but didn't know where else to get the right visibility. I got a tax slip from the track I race at showing that they reported to the IRS that I made money there. Can I write off any expenses for my car, or did I have to declare my racing ahead of time as a business? Anyone have any experience with this (Coach - any help)? Thanks ahead of time!
You need to set up a DBA or corporation. You need receipts for eveything you buy for the race car operation. Then you can right off the expenses. The best thing to do is talk to youraccountant and figure out the best way to handle it.
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From: on the dyno tuning in MD
Yeh, it was bracket racing. I didn't know they reported it either - first time I ever got a slip.
I usually do my own taxes, so I don't have an accountant. I figured you had to set up the small business ahead of time though - in other words, I can set it up this year and claim stuff at the end of the year, but I don't think I can set it up now and claim last year. I'll have to check into it further.
I was just hoping someone who bracket races regularly could tell me if they knew.
I usually do my own taxes, so I don't have an accountant. I figured you had to set up the small business ahead of time though - in other words, I can set it up this year and claim stuff at the end of the year, but I don't think I can set it up now and claim last year. I'll have to check into it further.
I was just hoping someone who bracket races regularly could tell me if they knew.
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From: on the dyno tuning in MD
Originally Posted by ApacheDrill
Is it more then 5000.00? Can you prove where you paid out more then 5000.00 in profit? I am setting up mine this year for the tax benifits regardles.. Hope that helped
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TECH Junkie
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From: Melbourne, FL
I don't know all the details, but I think you can claim the income from the track under "hobby income," and also be able to write off the corresponding amount. That way you don't have to go through the trouble of setting up an actual business.
Might be worth the effort to have a pro do your taxes (I think most places only charge about $75 or so).
Might be worth the effort to have a pro do your taxes (I think most places only charge about $75 or so).
On The Tree
Joined: May 2004
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From: FWB, FL
If you incorporate you can write your tow vehicle off as well and get it insured as a business vehicle. Just something to think about. I will be incorporating this spring so I can write off the 10k plus I will probably spend on the car this year. Plus the cost of my truck and the insurance on both.
Problem with 'hobby' expense is you can only write off as much as you win. And that has to exceed 2% of your gross adjusted income. So if you win 1000.00 you can write off 1000.00 of your expenses if you make 50k a year in your 'real' job. its not going to make a huge difference in total tax.
Like George said see an accountant if you want to start a business and write your race car stuff off, some people wont benefit at all, some will..
Like George said see an accountant if you want to start a business and write your race car stuff off, some people wont benefit at all, some will..
