t.nie
Patience Tester
This is something I came across a while ago, don't remember when, but it outlines that your racing operation, if converted to a business, can actually end up with a huge reduction in your overall tax bill.
http://articles.moneycentral.msn.com/Taxes/TaxShelters/TheUltimateTaxShelterYourOwnBusiness.aspx
Make sure to read the entire section devoted to a client who raced stock cars and earned $40,000 a year from his "day job" and paid $100 in taxes over three years, and would have paid NOTHING had he had receipts from his first year after converting his hobby into a business.
If I were a racer, I would be talking to an accountant for advice about this before the next season gets underway. It could save you a lot of money.
http://articles.moneycentral.msn.com/Taxes/TaxShelters/TheUltimateTaxShelterYourOwnBusiness.aspx
Make sure to read the entire section devoted to a client who raced stock cars and earned $40,000 a year from his "day job" and paid $100 in taxes over three years, and would have paid NOTHING had he had receipts from his first year after converting his hobby into a business.
If I were a racer, I would be talking to an accountant for advice about this before the next season gets underway. It could save you a lot of money.