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Any accountants out there?

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sokitset

Any accountants out there?
« on: March 24, 2003, 06:44:33 pm »
I recently finished my taxes and was thinking about the tall $ we all spend on a race season.  

Does anyone know a legal way to deduct racing expenses?  Can I just start a widget company and have it fail miserably every year?
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Xian_13

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Re: Any accountants out there?
« Reply #1 on: March 24, 2003, 07:16:19 pm »
Yes, but the Widgets need to show a profit after 5 years  8)
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sokitset

Re: Any accountants out there?
« Reply #2 on: March 24, 2003, 07:51:11 pm »
And if the widgets aren't profitable...?
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funksouljon

Re: Any accountants out there?
« Reply #3 on: March 25, 2003, 03:18:34 am »
"And those who wounder, What the H*ll just happned!"
_________________^___________________________^

I wonder, what the hell just happened?

:D
« Last Edit: March 25, 2003, 03:21:12 am by funksouljon »
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Jeff

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Re: Any accountants out there?
« Reply #4 on: March 25, 2003, 05:07:25 am »
http://www.racemotorcycles.com/cgi-bin/board/YaBB.pl?board=ccs1;action=display;num=1044458986;start=11

I spend a good share of money on accountants and lawyers each year to ensure I don't turn into Willie Nelson (oh wait, that would mean I get hair right?), and my conversation with my TAX LAWYER 2 weeks ago revealed that you really need to show profit 3 out of 5 years in order to keep out of audit zone.  It's no guarantee, but it'll keep you close.

If you run straight loss for more than 3 years, you will most likely be audited, the feds will say your "business" is more pleasure, and you'll end up paying taxes on everything you wrote off for those past 3 (or more) years.  Ouch...

Showing profit is easy...  Sell a few items on ebay, and only count portions of your expenses.

Showing loss is also easy (as we all know)...  

Depreciation is another key element.  You will end up receiving a depreciated adjustment for things like bikes, trailers, vehicles, and other large purchases.  They generally are written off over 5-7 years.

Again, get a lawyer or decent accountant who KNOWS what you are intending to do.  They will show you all sorts of things.  For example, how many WI residents knew that they are eligible to receive tax refunds on all fuel purchased for off-road use?

receipts - receipts and more receipts...
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