How to deduct winnings/expenses on taxes?

cad · 01-03-2010, 06:23 PM

Hello all,
A friend of mine that races T/S was audited by the IRS last August. He had a hired accountant/CPA doing his taxes year after year. The CPA made mistakes which caused him to owe the IRS for back taxes. He hired a new CPA and is working through the details of getting his situation turned around.
His new CPA stated that race winnings can be offset by expenses up to the amount of the winnings. In other words, you cannot claim a loss while racing as a hobby.
My question is, what form(s) are used to enter racing expenses to specifically offset winnings?

Thank you,
Clark Doukas

01-03-2010, 06:23 PM	#1
cad Senior Member Join Date: Apr 2009 Location: Omaha, NE Posts: 697 Likes: 198 Liked 91 Times in 51 Posts	How to deduct winnings/expenses on taxes? Hello all, A friend of mine that races T/S was audited by the IRS last August. He had a hired accountant/CPA doing his taxes year after year. The CPA made mistakes which caused him to owe the IRS for back taxes. He hired a new CPA and is working through the details of getting his situation turned around. His new CPA stated that race winnings can be offset by expenses up to the amount of the winnings. In other words, you cannot claim a loss while racing as a hobby. My question is, what form(s) are used to enter racing expenses to specifically offset winnings? Thank you, Clark Doukas