I know this has likely been discussed before and I tried the search feature which turned up nothing. Any of you serious racers take a tax deduction for your racing expenses? I am thinking about doing this for the first time ever and would like some real world input.
The first question is "do you have a business which is trying to generate a profit by racing"? If you answer yes then be prepared to show the auditor your business license, your business checkbook, your business tax returns, etc. If you don't have a business license, a business name, a business checkbook, etc. then you don't have a business. You have a hobby. If you have a business checkbook and you can show income as well as expenses then you have a decent argument.
