Can one deduct cost of a kit car as a hobby?

[FUNFER2]

No, we just deduct the parts and travel expenses. We buy most of the parts from Speedway motors. All of the sponsors get their deductions for advertising also. It's just like most of the professional racing teams, Nascar, World of outlaws, F-1 ect....... As a note. I hate that Nascar has got so commercialized that every shot of the car, inside car cams, sponsors want every angle to show their name but, their paying the bills. When we win a "A Feature" and the track photographers takes a photo of the team and car, we make sure all the sponsors are shown, we then give them copies to show off. It makes the happy and were glad to do it. With the main sponsors, we take the time to bring the sprint to their location and give autograph photo's, let people sit in it and talk about the car, give out pit passes ect. It's all business. It's a lot of work but, it's needed as we could not afford racing without them. Example, a right rear tire costs $160, left rear is $125 and we can go through 1-4 tires a night depending on the track conditions. We use anywhere from 15-30 gallons of alcohol a night. We broke one rear heim joint, holding the quick change rear end square. As it moved back, it bent the frame, broke a four bar, and the rear end was trash. It cost $3,500 to fix. It all started with a $10 heim joint ! It was aluminum, we now use steel. Lesson learned.
Anyway, we give all the receipts to our C.P.A
This is why we need sponsors & deductibles !

[wtm442]

Kevin

Great advice! In my post on page 1 and your post ... we both mentioned a CPA. Taking deductions for a "street" car can be a lot different than a race car. But with a CPA doing a tax return, it reduces the chance of an audit.

Also, like my CPA told me, if I am ever audited, she would be the only one to meet with the IRS. She joked that I would be at least 1000 miles away during an audit. She said if I was there I'd probably say something stupid

[FUNFER2]

LOL ! That's funny.
yes, if the IRS comes around, take a long..........vacation, to the Caribbean !

[wtm442]

Did I mention that my CPA is my sister? She knows me!