Question:

I do a lot of driving events all over the eastern seaboard. Sometimes I drive up to 800mi. each direction and spend a lot of my time doing this sort of thing. Here is my question:

Is it possible to create a buisness (obtain a buisness license) for a race organization and use it as a tax deduction? Would it be possible to have a buisness called: "X" Motorsports and take the reciepts from my traveling to and from events, as well as hotel costs and even the costs of the event, and have them deducted from my taxes? I figured since I did some many events, plus have bought a vehicle for towing, as well as a trailer, I could give it a shot.

I didn't know if this would be possible since it would not be a source of income (since I am not wheel to wheel racing and making a large portion of money).

Thanks for your time and assistance.

 

 

I'll give anything a shot to beat the system.

Plus it would give me a hell of a lot more track time.

 

Well I think if you went to the State Board of Equalization and set up a sole proprietorship, set up some accounts with some performance part suppliers, and marked the track days off as "advertising", it could work. Who knows...

 

You would need to be able to prove that you are in the business to try make $. Whether you succed is another story.... I think the IRS Rules say something like...you must show a profit 3 out of 5 years or they will come ask you questions on why you are not...and possibly put you out of "business".

What would you sell? You would probably be smart to show some receipts.... sell tee-shirts.?

Just don't try to write off your track fees....that would probably be pushing it......o wait....you are already pushing it.

With that in mind, since it would be a tax deduction, you want to buy my spoon wheels for $2k now? "It's a write off"

Scot