Winnings and taxes?

[tstruyk]

sounds to me like anything won can be jsutifiably deducted with expense (entry fee's for sure, tires, fuel, lodging etc... a little grey)

SD, I hear ya.  I know you can do "whatever you want" with your tax dedcutions... just didnt want to have to "justify" it later and be scramblin!  

I figure if I deduct a reasonable amount for advertising say for.. my FUSA Team challenge expenses only (supporting other riders so to speak) that would be pretty safe.  Couple a grand written off is better than none, I'll chat with my tax guy about the rest of the season and let you all know.

I get such a big bite of taxes taken i am always on the lookout for legitmate deductions!

Mike I was asking what dave answered...

timmay

[extrakt0r]

Mike I was asking what dave answered...

timmay

Ok...

This is the way I do it...

I have multiple Business...

I have one Business that I run for my IT Consulting, and another Business for my Racing...

One is called MAS Consulting, the other is Team Simone Racing...

Two differenct Banking Accounts, and two different Tax ID's...

MAS Consulting sponsors Team Simone Racing...So in effect, MAS Consulting pays for all of Team Simone Racing's Costs...This is free money to TSR and a Tax Right off for MASC...

That is the best and cleaniest way to do it...

In addition to that, my Truck and Toyhauler are owned my MAS Consulting, so those are also Tax Right-offs and all the mileage to and from the events, in addition to mileage I use for my business...

I also get to right of tons more...

The Garage Space, my office, a portion of all my utlities based on a %...

It never ends...

You need a good Tax Man to hook you up...  8)

I think I read on KCSB you own a Granite Company? You need to have your GRanite Company sponsor your Racing Company...  ;)

[JBraun]

Does anyone know the tax laws for money won in races?  Specifically WI & Federal tax laws..  Is it exempt below a certain amount? (I'm guessing its not, but wishing it was!)  And if it does have to be reported, will I get a W-2 or some sort of form like that?

If you're making money club racing, you're my personal hero...

[ahastings]

you can win money racing?!?!?

 ;D


You are talking cash payouts and not certs correct?  I would think that it would be taxed similar to income (some guys do it for a living).  1099 type return

Good question!

I poked around a bit and here's what I found...


Am I reading this right?  under the hobby section.. that if I have income from a hobby I can deduct the expenses I incurred generating that income?  Call me creative but I think I just found a way to write off racing!  ;D

timmay




info cut from http://taxguide.completetax.com/text/Q04_3000.asp

That is only if you itemize and it is added to misc expenses on your shedule C, but only the amount more than I think 2% of you AGI.

[Jeff]

A lot of random advice here which may at some level be applicable to you (the reader).  Or, done wrong, it may wind you up in SEVERE DEBT to the IRS, and facing potential jail time.

Do yourself a favor.  If you intend to write off any portion of racing, find a tax attorney and discuss it with them.  If you're in S.E. WI and need recommendation on an attorney, shoot me an email or pm.

[spyderchick]

Do yourself a favor.  If you intend to write off any portion of racing, find a tax attorney and discuss it with them.  If you're in S.E. WI and need recommendation on an attorney, shoot me an email or pm.

Ditto that. Remember, you get what you pay for...

[tstruyk]

I hear ya... just looking for precedent!

They way I see it, it is something that can be done, just needs to be set up from the get go as such.  My tax guy is pretty darn good, especially with itemizing and S.E. income (my wife owns her company as well) come into play.  I think a pow wow with him is the next step.  thanks for the input all!