Question for PRO drivers/teams???

[XPirate]

Have a couple questions for those of you that either run a pro team or are a pro driver yourself.... Really considering doing some races this year and trying figure out some last details. 1st, what are the tax implications for the purses you win? If you don't mind, do any of you run your racing as a business, or just tack onto your own individual income? 2nd, do your contingency winnings also count towards taxable income? Of course, I might not ever win anything in any of the races, just want to be ready if I do...Any and all help would be appreciated and if you'd rather PM me your response, that is totally acceptable. Looking forward to this year, but want to be prepared rather than finding out I somehow owe the GOV more tax money...

 

[facteryfmf]

I know most organizations 1099 you if over i believe $600 in winnings.

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[XPirate]

Ya, I might race all year and never see $600, but if I get lucky and do, I'd rather know how to avoid getting it taken from the GOV... I've heard if you keep receipts to show your expenses, but was hoping someone could elaborate a little. I know I'm not gonna make a boatload of $ or get rich trying, just don't want to get any poorer....

 

[facteryfmf]

Can't say I've ever been 1099d from racing but I can say that yes you can write a ton of stuff off on a 1099 income. With that being said I don't think you will have to owe the gov any money if you win some

 

[Ignore Amos]

I can guarantee that your losses or expenditures will far excess your winnings...paying taxes on winnings is the last of your financial worries in racing

 

[GOVACHO]

LET THE SPENDING BEGIN !!!!

 

[noceros]

best in the desert sent me 1
borr didn't yet

 

[Heybeerman]

Keep all of your receipts build cost, equipment and gear including travel expenses and RV upkeep. you will never make a profit, and will have a nice loss to claim.

 

[crazywatson]

I always wondered the same thing. I want to start racing eventually. I always wondered how much you can contribute to your race team from your business if you sponsor the car.

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[XPirate]

Keep all of your receipts build cost, equipment and gear including travel expenses and RV upkeep. you will never make a profit, and will have a nice loss to claim.

It's a loss if you run it under a business, say, for advertising? But I've heard if i just run it out of personal cash, it's considered a hobby? Am I even close to understanding that correctly or can i run it as a loss on a personal level?

 

[BlackRhinoJessie]

It's a loss if you run it under a business, say, for advertising? But I've heard if i just run it out of personal cash, it's considered a hobby? Am I even close to understanding that correctly or can i run it as a loss on a personal level?

I would say when you do your taxes this year ask your tax person about it.... Find out the ins and outs of what they can or can't write off???

Good Luck!