class racing as a business?

Pure Stock runs in Stock in IHRA and yes, with contigency money, the potential is there to make that much money. Good point; thank you! We don't have a tax person as we've always done them on our own since our taxes are very straightforward and simple to do. It sounds like I need to contact someone about starting our own business and then asking them if there will be any tax advantages to doing so. I thought someone may have been in a similar situation with their income and what they spent on racing.

[HR9121]

Hey Scott, I asked my CPA about it last year and was advised against it as the IRS has been very critical of these business arraignments of late in her opinion. She told me I just as well start a non-profit with the words Tea Party in it when I asked her again this year. I would contact a tax professional in your area and get an opinion based on your income and plans though.

[SStockDart]

Scott...........thinking about it a little bit more and I believe you would have a really difficult time convincing the IRS that you are running a business......Since both you and your wife have full time jobs, I would not even consider it.
That doesn't mean that you can't go out and have a good time......Have fun drag racing, with your family, It is expensive but probably the best value for "family time"

[FED 387]

look for Julie Jordan her Dad/Grandpa is an original SS/S hemi racer goes way back ot the early 60's-- anyway she is an Accountant might be able to advise you --Regards FED387

[pmrphil]

Hi Scott
You will probably find that IRS will want you to show them the reasonable ability to make a profit - you can usually write off winnings against costs, but they will take a hard look at losses, I've heard that losses over $6,000 trigger automatic reviews, and also 3 or more losses in any 5 year period do the same. Find a good tax guy with automotive experience and ask a pile of questions first. In the meantime, have fun racing - that's the whole idea, isn't it?

Thanks guys for the advice. Of course we race for fun and will continue to do so. We were just making conversation on our way back from Dallas tonight after we went up to pick out our new motorhome. The thought was hey, we spend all this money to race (and enjoy it and will continue to) I wonder if we are missing out on a tax opportunity. If not, so be it. We look forward to meeting new people and making new friends.

[Bobby Brannon]

John Brimer (A/SA) Julie Jordan both are CPA they are on this forum. Ask them. John is my CPA

[CMcAllister]

Years ago, we were audited and were successful in defending our racing expense deductions. However, we had a shop that was about 75% racing and was our sole means of support. The race car was used for R&D, advertising at the races and we also were soliciting sponsors for a revenue stream as well as trying to win money at races that paid well.

Start a race related business or one that depends on racing for customers.

Talk to a tax person familiar with racing. With the government that we have now, I would not invite the man into my life by trying to claim anything that's not a legit business that exists to make money.