class racing as a business?

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, 10:15 PM	#9
pmrphil Member Join Date: Aug 2010 Location: CT Posts: 459 Likes: 1,805 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