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Author Topic:   form "1099"
DMA Racing
Dirt Forum Racer

Total posts: 82
posted November 24, 2002 08:16 AM
anybody get a 1099 from the track you race at?

Eljojo
Dirt Freak

Total posts: 273
posted November 24, 2002 08:50 AM
yes,yes.....

[This message has been edited by jammin (edited November 24, 2002).]

BK19
Dirt Freak

Total posts: 285
posted November 24, 2002 02:22 PM UIN: 40696038
only if we get more then 600.00 in a season from the track

DMA Racing
Dirt Forum Racer

Total posts: 82
posted November 24, 2002 03:21 PM
does anybody claim racing on there taxes?

BK19
Dirt Freak

Total posts: 285
posted November 24, 2002 03:58 PM UIN: 40696038
yes every year deduct pit fees,fuel ,parts,gas to get to and from the track,etc...

66jj
Dirt Freak

Total posts: 352
posted November 24, 2002 06:07 PM
yes i get a 1099 an i deduct that amt. in race costs. its like gambling if you win a 1000 and lose 2000 you can wash out the win and not pay taxes cus its not income.. you lost 1000 in the end..


DMA Racing
Dirt Forum Racer

Total posts: 82
posted November 24, 2002 06:15 PM
66jj.....wish that was all i lost

stockcar5
Dirt Full Roller

Total posts: 63
posted November 24, 2002 06:37 PM
if you get a 1099 then racing for you is a small business...keep those reciepts!!!

luke

racer2
Dirt Maniac

Total posts: 166
posted November 24, 2002 07:42 PM
a small non profit business..lol.

madmodshoe
Dirt Forum Racer

Total posts: 89
posted November 24, 2002 09:55 PM
be carefull in this pursuit! You must show a profit in a small business for three out of five years. By consistently showing losses you are opening yourself up to unwanted audits and fines. There are a myriad of new tax laws every year and the Government doesn't mess around if they audit you. Big brother wants all his money all the time, so do not give them any reason to "red flag" your tax return. There are proper ways to deal with this, consult your accountant. By the way, you WILL get more money back by going to a professional to have your taxes done. Why do you think the IRS makes it so easy for you to do your own taxes?

2nd2none
Dirt Freak

Total posts: 368
posted November 24, 2002 10:23 PM
I pay to have my "business" wrote off by a professional tax accountant. What he told me was I have to show a profit atleast once every 5 years for a small business. For the guys who don't write their racing off, you should.....do you think nascar teams would spend the money they do if they couldnt use it as a tax write off....same goes to you're sponsors, make sure they know that the money/parts they give you can be used as a write off for them.

BK19
Dirt Freak

Total posts: 285
posted November 24, 2002 10:45 PM UIN: 40696038
Well H & R BLOCK says you do not need to ahow a profit only a income there is a differance

outlawstock17
Dirt Forum Champ
Total posts: 620
posted November 25, 2002 07:31 AM
since i'm self employed and own my business, i write off my racing expenses as advertising on my schedule C.

stockcar5
Dirt Full Roller

Total posts: 63
posted November 25, 2002 12:39 PM
i think BK is right....you just need an income to write it off. just make sure you keep all reciepts and dont lie!!! then you have nothing to worry about.

luke

Eljojo
Dirt Freak

Total posts: 273
posted November 25, 2002 09:43 PM
Sorry Jammin' Guess I was feelin' froggy! LOL

Dixon
Dirt Full Roller

Total posts: 45
posted November 25, 2002 11:57 PM
Madmodshoe and 2nd2none are making statements everyone should listen to.

Being careful, and having a professional do the returns are critical to success with the IRS. H&R Block doesn't always get the best employees, considering most people who graduate with a degree in accounting join CPA firms, law firms, or go into corporate accounting. I'm in college right now at The University of Georgia, and I'm majoring in Real Estate and Finance. We spend the majority of our time discussing ways to structure companies and deals in a way to avoid as many tax implications as possible. And trust me, there are plenty of ways to avoid taxes, but it's just like a game. The better you know the rules, the better off you'll be. Hiring a competent professional may seem costly upfront, but he or she will certainly pay off in the end.
And you must be careful to not attract the attention of the IRS, because "flagging" returns is something they do, and you don't want to be in that situation.
There is a difference between "profit" and "income", but if your company never shows a profit, or never breaks-even, you WILL raise eyebrows at the IRS, and you will pay.

FatmanVance
Dirt Newbie

Total posts: 1
posted November 26, 2002 03:32 PM
Hey guys,

I've been doing a little research on this matter. Check out this link: http://www.irs.gov/businesses/small/article/0,,id=99239,00.html
It may be of some help. I'm going to definately talk to a tax professional before I actually do this and would suggest anyone else do the same. Hope this helps.

Vance

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