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?