CLASS RACER FORUM - Truck and trailer weight???

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Re: Truck and trailer weight???

Quote:

Originally Posted by frank v (Post 105400)

1. Is any prize money declared as regular income
2. Do you take your racing expenses off your taxes or your companies taxes
3. Is corprate sponsership involved
If your if you awnser no to question 1 or yes to 2 or 3 you need a cdl
For more info goto the US DOT website and use their search feature and search 390.3 question 21
what about if you answer no to all 3?

If the awnser to queston #1 is no then you must be declaring your income as a business and therefore you need a cdl

Basically if you declare winnings on your own taxes you are declaring it as regular income.

in other words if you win a $10,000 to win bracket race as long as you declare it on your personal taxes your ok

As long as you dont take your expenses off your taxes your ok and dont need a cdl
As long as the side of your car,truck or trailer does not have a business that is a LLC or Inc or Corporation your ok.
Contingency payment are not sponserships they are prize money so from what I found out they dont count as corp. sponsership either.

Hope this helps

Re: Truck and trailer weight???

Quote:

Originally Posted by Rob Petrie E395 (Post 105415)

I haven't won any prize money "yet"

Re: Truck and trailer weight???

Quote:

Originally Posted by art leong (Post 105424)

I haven't won any prize money "yet"

Hang in there it will happen if you stick with it. While I do have some to declare its still nowhere near what I spend on this racing addiction every year. I keep telling my wife that at least when I quit I can sell my stuff for pennies on the dollar if I was a drug addict we couldnt get any of it back LOL. Thank god my business is still doing OK, I dont think I would be a plesant person to be around if I had to quit.