Setting your racing activities up as a business sounds good----but requires a lot of time, record keeping. Get a GOOD accountant to help you, one that has been though it before---that has survived audits of racing businesses.

We have been doing it for ten years---an oval track operation. You will be amazed at what you spend and what you must claim as income. Setting up a business does help, especially if you are in the upper income level(tax wise). But you must do it correctly---if you don't the IRS will have no sympathy.

And, if you decide to "get out"----you may have a very large "back side" to pay tax on. Once you buy haulers, trailers, engines, chassis---all depreciated---and you then sell all of it---that is gains---and taxable. A friend sold out last year and now faces a $175K taxable income.

Decide how serious you really are before getting into it!