<VV> Taxing issues

[Sethracer at aol.com]

In a message dated 2/21/2009 5:08:02 AM Pacific Standard Time,  
gswiatowy at rochester.rr.com writes:

Hobby  expenses tax deductible?
Yeah right.................

I would check  with another consultant, I bet another one would not agree.
I think you  have been given some very dangerous information.
If any of it were factual,  we would all have been doing it for years.

Gary  Swiatowy




Very generally speaking, deductions are only allowed for money given to a  
registered church or charity. (CPF qualifies!) or for a business spent in  
pursuit of a reasonable return. That is why amateurs cannot deduct racing  
expenses. There is no chance of a reasonable return - i.e. prize money. They  look 
thoroughly at "Hobbies" purported to be a business. 
 
Now - Just as an example - Silicone Wire Systems is a real company,  with a 
chance of making money. We buy stuff, we produce stuff, we advertise and  we 
sell stuff. The only SWS write-off I get on my race car is entry fees,  because 
that is an advertising expense. That is why "Silicone Wire Systems" is  on the 
side of the car, and in front of the announcer. I hope that  other Corvair 
oriented competitors and spectators will think  of "Silicone Wire Systems" when 
they need wires for their car. (And  many do!) I can't write off the expenses 
of building the car, since there is no  reasonable chance of earning any money 
from it. Now, as for Charities, the IRS  has a ton of rules about donations - 
and they change constantly. Be  careful!
 
Seth  Emerson

C's the Day! - Corvair, Camaro, Corvette,  Conservative in tax matters



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