> > 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).
The IRS does allow you to write off hobby related expenses. However, IIRC,
they are subject to two key limitations:
- Your hobby must generate a profit
- Your deductions cannot be larger than your profit
There is an IRS publication that deals with this topic directly. Free
download.
At this time, our region doesn't sponsor events with cash purses. An
interesting idea, though....
Also, as you wonder through the bowels of the IRS website, you might learn
that you may have to claim as income any "support" you receive from sponsors
to support your hobby.
Cheery thought for the day,
Rob
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