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Author Topic:   Taxes
shotokanbuff
Member
posted March 18, 2003 02:48 PM
What do you all do when it comes to tax season and any income you have made the previous season? Do you keep all of your receipts that you have from buying stuff? I have been keeping mine, but I wanted your all's opinion on the matter. Thanks!

donnie

powerglides
Member
posted March 18, 2003 02:55 PM
Well, I work for H&R Block as a tax preparer and you can keep all your reciepts and you should of gotten 1099's from the race tracks that you made money from.You can claim your racing as a buisness and you DONT have to have any written forms and it DONT have to be your first year. You can claim racing as a buisness and you can have a loss for three years and then you have to show a profit from it. It can be a small one as long as you made a profit. If you have any more questions let me know.
Tawnya

[This message has been edited by iowa_dirt_track_girl (edited March 18, 2003).]

Flatlander
Member
posted March 18, 2003 05:19 PM
Get the Steve Smith Tax guide book for racer's. It's a 100 and some pages.
It explans the difference between claiming it as a hobby and a business.
The short of it:
Hobby= only can claim expense's that equal profit's.
Business= you can claim all your expenses but as dirt track girl said only three years of losses before profit.
To quailify as a business and to help if you get audited the book starts you should 1. Keep time sheets for the amount of time you work on the car during the week (enough hours to show it's more than a hobby).
2. keep a journal to show you are making wise business decision's (on a certain race call and ask the payout, add all the expenses you would have for that race, and be reasonable on the money you could win, does it make good business sense to go ?)
3. Have a seperate business account for the racing funds.

This is just a few things in the book.
It's a good book well worth it.
My accountant said I show be able to receive around 30% of my lost back.

Good Luck..

iowa_dirt_track_girl
Member
posted March 18, 2003 11:07 PM
I have done alot of race car drivers that put their racing as a buisness and they thought they would have to pay in and they got money back. If you have any questions and would like me to help please feel free to e-mail me.


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