Not trying to talk you out of it if you are legitimate. Only you know the details of your operation. The fact that you felt the need to ask is kind of a clue though.
If you are racing on a serious basis, traveling to places where you can make money, winning some races, getting some financial help, treating it as a business, plan to continue into the future, etc., go see a CPA. Get organized and run it as a business this year. If you make some money, do well and look good on paper, even if you've not made a profit, you and/or your accountant can make that decision in January 2017. I wouldn't do it in 2016 without having done it correctly the entire year.
I race all over the country. We won the YB Nationals in Outlaw 10.5 2 years ago. My yearly budget for this effort has been 6 figures. I get no sponsorship money. It certainly is a hobby but I'm always trying to make money.
