class racing as a business?

FED 387 · 07-15-2013, 09:53 PM

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 · 07-15-2013, 10:15 PM

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?

07-15-2013, 10:22 PM

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 · 07-15-2013, 10:24 PM

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

CMcAllister · 07-15-2013, 10:46 PM

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.

SStockDart · 07-15-2013, 11:43 PM

I can't resist........If you are a conservative, don't let the IRS know or you will be audited for sure.

07-15-2013, 09:53 PM	#1
FED 387 VIP Member Join Date: Jun 2006 Posts: 3,420 Likes: 529 Liked 333 Times in 180 Posts	Re: class racing as a business? 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

07-15-2013, 10:15 PM	#2
pmrphil Member Join Date: Aug 2010 Location: CT Posts: 460 Likes: 1,808 Liked 348 Times in 152 Posts	Re: class racing as a business? 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? __________________ Phil Molski PMR Performance S/C 1623

07-15-2013, 10:22 PM	#3
Tar Heel Guest Posts: n/a	Re: class racing as a business? 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.

07-15-2013, 10:24 PM	#4
Bobby Brannon Senior Member Join Date: Mar 2002 Location: Bossier City,La. Posts: 659 Likes: 3 Liked 104 Times in 35 Posts	Re: class racing as a business? John Brimer (A/SA) Julie Jordan both are CPA they are on this forum. Ask them. John is my CPA __________________ Bobby Brannon 4705 STK, SS

07-15-2013, 10:46 PM	#5
CMcAllister Senior Member Join Date: Sep 2006 Location: Fulton County, PA Posts: 615 Likes: 16 Liked 920 Times in 259 Posts	Re: class racing as a business? 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. Last edited by CMcAllister; 07-16-2013 at 11:22 PM. Reason: Insert an important "not".

07-15-2013, 11:43 PM	#6
SStockDart VIP Member Join Date: Dec 2007 Location: Arizona, Texan forever Posts: 1,176 Likes: 879 Liked 574 Times in 212 Posts	Re: class racing as a business? I can't resist........If you are a conservative, don't let the IRS know or you will be audited for sure. __________________ Gary Hansen - SS/FA 4911, B/SA 4911