Visit The Dirt Forum for More Information

Author Topic:   Racing and Income Taxes...
dluna
Dirt Freak

Total posts: 334
posted December 17, 2002 11:46 PM  
I have heard many stories about how racers or owners find a way to write off a lot of the money spent on racing because they say it is advertising. I have recently started my own business and I will have plenty of business logos on the car. I assume I would now be in the same boat and would be able to write off SOMETHING and call it advertising for my new company. My question is what and how much can one legally do this? I live in Missori if that makes a differnce. If you don't feel comfortable replying to this thread, please PM me instead with ANY info that could possibly help. Thanks in advance.

David6019
Dirt Roller

Total posts: 7
posted December 18, 2002 08:58 AM  
quote:
Originally posted by dluna:
I have heard many stories about how racers or owners find a way to write off a lot of the money spent on racing because they say it is advertising. I have recently started my own business and I will have plenty of business logos on the car. I assume I would now be in the same boat and would be able to write off SOMETHING and call it advertising for my new company. My question is what and how much can one legally do this? I live in Missori if that makes a differnce. If you don't feel comfortable replying to this thread, please PM me instead with ANY info that could possibly help. Thanks in advance.

not positive but i beleive you can write off about 40% of what you spend as advertising, if i am wrong someone please advise!!

STICK01
Dirt Maniac

Total posts: 164
posted December 18, 2002 01:56 PM  
my tax advisor just had me claim it as income under my own name and then took off about a $4K loss, said the IRS will not question it as long as we continue to show improvement....only $3800 loss this yr.

modracer25
Dirt Roller

Total posts: 22
posted December 18, 2002 07:47 PM  
WRITING OFF RACING IS VERY TRICKY YOU NEED A VERY CREATIVE TAX MAN IN MN YOU CAN WRITE IT OFF AS A BUSINESS BUT YOU HAVE TO SHOW A PROFIT IN 3 TO 5 YEARS OF WRITING IT OFF OR GOOD OLD UNCLE SAM WILL COME KNOCKING AT YOUR DOOR SAYING IT IS JUST A HOBBY NOT A BUSINESS SO BE VERY CAREFUL ON HOW YOU WRITE IT OFF KEEP A SEPERATE CHECKING ACCOUNT FOR THE BUSINESS AND KEEP ALL OF YOUR RECIEPTS AND KEEP GOOD TRACK OF WHAT YOU WIN FOR YOUR TAX MAN

Woody44
Dirt Full Roller

Total posts: 53
posted December 19, 2002 08:53 AM  
dluna, I know nothing on the subject, so i ordered Steve Smith Autosports
'racers tax guide'
it'll get you familier enough to go to a tax consultant and expalain yourself and what you are looking to do. And not look stupid

DMS CEO
Dirt Freak

Total posts: 284
posted December 19, 2002 11:59 AM  
I go to a tax woman that does alot of racers taxes so she is very familiar and knows what she is doing. That is what I would suggest. Ask your big money competitors they will hook you up with somebody. I LOVE MY TAX PERSON!!

Back to the Archives