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Old 01-03-2010, 07:51 PM   #5
Julie Jordan
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Join Date: Dec 2001
Location: Modesto, CA
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Default Re: How to deduct winnings/expenses on taxes?

Quote:
Originally Posted by cad View Post
My racing is just a hobby. I made enough that I need to account for the expenses related to it this year. I have been using TurboTax since the most complicated part of our family return is Goodwill donations and the occasional ESPP stock sale.
TurboTax doesn't break this item down well.
Do I just need to keep copies of my checks that I paid for entry fees, etc?
How about fuel and mileage on the truck/trailer?
Can we track anything related to food, pop, water?
I have my racing log book that shows where we raced and when. Can I estimate the mileage?
I pay cash for racing fuel through a friend.
Is there anything that I can estimate within reason?

Thank you, again.
Clark
Ideally, receipts are needed in the event of audit. Your log book, NHRA schedule, qualifying sheets will document you were there so it's reasonable you would incur mileage, race gas, etc. Most auditors will allow that if your other records are in shape.

As far as food, etc. goes...only your portion of those expenses. As you have no employees you can't deduct expenses paid for others.
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