[mitchntx]

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?

[nape]

I've been wondering about the "rules" were too because my dad used to do it 25 years ago when he was racing stock cars. They were paid (feature finishing place) though, so it was a whole different ball game.

I know paid sponsorship is a rarity (from what I've heard), but would that allow you to establish a SP and run it as a business?

Also, I do in-home computer consulting on the side (cash), anyway I could work that money into the "race team" better then just setting the cash to the side for it?