 Racing as a business |
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 Nov 23 2005, 04:19 PM
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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? |
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Nov 23 2005, 06:39 PM
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Advanced Member Group: Advanced Members Posts: 902 Joined: 27-January 04 From: Magnolia, Tx. Member No.: 160 |
A 1099 takes the place of a W2. Its a statement of income generated by the payer to show they paid and did not withhold taxes, social security, etc.
Nape...you can certainly run a business and use racing as a form of advertisement. Several people I know do this. You could end up getting into trouble if you get audited and cannot show that your racing ever resulted in revenue for the company though, so its not a slam dunk. In an audit, the IRS may decide to claim that your advertising is actually a hobby and is unrelated to the business. This is a difficult one for sure. Paid sponsorship definitely qualifies the racing effort as a business. It is an advertising company, similar to a magazine. Maybe I should set myself up as a racing business and tax consultant!! (IMG:http://www.frrax.com/rrforum/style_emoticons/default/laugh.gif) (IMG:http://www.frrax.com/rrforum/style_emoticons/default/laugh.gif) (IMG:http://www.frrax.com/rrforum/style_emoticons/default/laugh.gif) |
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Posts in this topic
mitchntx Racing as a business Nov 23 2005, 04:19 PM
sgarnett I would look into setting up an S-corporation.
T... Nov 23 2005, 04:27 PM mitchntx thanks Sean ...
If this year is gonna be any indi... Nov 23 2005, 04:40 PM trackbird I have to talk to my accountant, but my autocross ... Nov 23 2005, 04:51 PM Absolut Speed Mitch,
How do you look in an orange jumpsuit?
Re... Nov 23 2005, 04:56 PM 35th_Anniversary_AS_Camaro_SS I'm going to be attempting to write off expens... Nov 23 2005, 05:09 PM rmackintosh QUOTE (sgarnett @ Nov 23 2005, 10:27)I would ... Nov 23 2005, 05:22 PM mitchntx QUOTE (Absolut Speed @ Nov 23 2005, 10:56)Mit... Nov 23 2005, 05:23 PM mitchntx QUOTE (rmackintosh @ Nov 23 2005, 11:22)with ... Nov 23 2005, 05:25 PM mitchntx QUOTE (mitchntx @ Nov 23 2005, 11:25)QUOTE (r... Nov 23 2005, 05:25 PM CMC#5 If you're being paid then you are a business. ... Nov 23 2005, 05:27 PM rmackintosh Al is right in all the things you should do to ... Nov 23 2005, 05:42 PM marka Howdy,
Someone else can probably confirm or deny,... Nov 23 2005, 05:52 PM nape I've been wondering about the "rules... Nov 23 2005, 06:20 PM mitchntx Good discussion and I appreciate all the comments ... Nov 23 2005, 06:42 PM sgarnett As someone already touched on, claiming part of yo... Nov 23 2005, 06:42 PM mitchntx I wonder how one would classify and depriciate an ... Nov 23 2005, 06:57 PM tom97ss I work with a guy who is a stunt pilot. We had a ... Nov 23 2005, 08:47 PM TOO Z MAXX Wow this is very interesting. I own an electrical... Nov 23 2005, 09:43 PM slowTA Wow, you really can find ALL kinds of unexpected i... Nov 24 2005, 01:57 AM nape QUOTE (CMC#5 @ Nov 23 2005, 13:39)Nape...you ... Nov 24 2005, 08:46 AM
sgarnett QUOTE (mitchntx @ Nov 23 2005, 13:57)I wonder... Nov 24 2005, 10:15 AM |
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