Salah:
I'm afraid the IRS is ready for you on this one. If this "side" business is
related to a hobby, they will usually allow you to write off expenses equal
to your sales. So if you sell $3k worth of Kick-Ass special autocross
formula additive, then you could maybe write off the same in autox expenses,
but there definitely would be a limit. If the business is your main source
of income, and you can prove that autocross is bringing you customers, then
they might let you write off more.
-Vernon
on 1/30/03 4:01 PM, E911me@aol.com at E911me@aol.com wrote:
> Hi all,
>
> As I was thinking about racing events and associated expenses, it occured to
> me that some people must use a small business and its subsequent
> tax/government benefits to stretch their racing passion funding? For
> instance like selling something on the side, using this entity to be able to
> write off their reciepts and usage of the car? I mean my thought would be
> that you'd pay for it anyway, but by doing this, it makes the net expense to
> you much less? See where I'm going with this?
>
> I was wondering if many do this, and if there are some suggestions on how to
> structure something like this? I can see some major car expenses coming my
> way, but to alleviate the burden if I don't quit my day job as a slacker,
> heh, then maybe I can run some side business as a distributer of some one off
> part or service (that would sell itself) to make what I would normally spend
> on the car less come each year end?
>
> I'm thinking aloud right now, but was looking to see if people had any
> suggestions on what has been done successfully, if it can be done, and any
> other advice.
>
> My thoughts were about setting up a small personal businesses that can be run
> as a smart cover for racing expenses and side money (if not alleviate all,
> make the finance easier). This is a different discussion than having an
> outside sponsor?
>
> Thanks in advance
>
> Salah
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