Racing as a business - F-Body Road Racing and Autocross Forums

OK ... I think I have all the elements in place to call my racing a business.

I have been reluctant in the past because in CMC there is no prize money and therefore no attempt at income.

But now that I have landed this Texas Driving Experience driver/instructor gig, there is my avenue for income.

It is my undersanding that all expenditures that I incur to help me in my driver/instructor role can be deducted.

All my safety gear is obvious ... suit, helmet, gloves, underwear, shoes ...

But what about the CMC car itself? Could I not contend that without the car, I would have never gotten the job? And to increase or maintain my skill level, I must continue my education as a driver ... enroll in CMC hands on "seminars" ... al of which is deductible ...

Right now, I am being paid via a 1099 and as an individual. Should I set up a sole proprietership and have TDE pay the SP? Could I, as an individual, support that SP from my regular income and get a tax break that way?

What about my shop where I build and maintain the car(s) ... how would that figure into the equation?

mitchntx View Member Profile	Nov 23 2005, 04:19 PM Post #1
Nothing says 'I love you.' like a box of Hydroshoks Group: Moderators Posts: 5,284 Joined: 23-December 03 From: Granbury, TX Member No.: 4	OK ... I think I have all the elements in place to call my racing a business. I have been reluctant in the past because in CMC there is no prize money and therefore no attempt at income. But now that I have landed this Texas Driving Experience driver/instructor gig, there is my avenue for income. It is my undersanding that all expenditures that I incur to help me in my driver/instructor role can be deducted. All my safety gear is obvious ... suit, helmet, gloves, underwear, shoes ... But what about the CMC car itself? Could I not contend that without the car, I would have never gotten the job? And to increase or maintain my skill level, I must continue my education as a driver ... enroll in CMC hands on "seminars" ... al of which is deductible ... Right now, I am being paid via a 1099 and as an individual. Should I set up a sole proprietership and have TDE pay the SP? Could I, as an individual, support that SP from my regular income and get a tax break that way? What about my shop where I build and maintain the car(s) ... how would that figure into the equation?

rmackintosh View Member Profile	Nov 23 2005, 05:42 PM Post #2
Senior Member Group: Advanced Members Posts: 5,226 Joined: 24-December 03 From: Danville, CA, USA Member No.: 27	Al is right in all the things you should do to "show" the business....if you can get the income part going....you can work to the zero profit level....my problem was ALWAYS the profit part....we would have to get "creative" to show that and she slaps me in the back of the head every time I come up with a new way to do it..... (IMG:http://www.frrax.com/rrforum/style_emoticons/default/biggrin.gif) Writing off mileage and consumables sounds like a no brainer since you are now a "pro-pesional" and all... (IMG:http://www.frrax.com/rrforum/style_emoticons/default/wink.gif)