NetNews Usenet Archive 1993 #3/NN_1993_3.iso/spool/misc/taxes/4322

Internet Message Format | 1993-01-28 | 1.6 KB

Path: sparky!uunet!littlei!hfglobe!ichips!pdx165!mikel
From: [e-mail] (Mike Lee)
Newsgroups: misc.taxes
Subject: Taxation on hobby/personal business?
Message-ID: <[e-mail]>
Date: 26 Jan 93 22:29:51 GMT
Sender: [e-mail] (News Account)
Reply-To: [e-mail]
Organization: Workgroup Computing Division, PDX, Intel
Lines: 30

I'm starting to work on my personal taxes for this year, and I'm wonder how
I can claim a hobby as a deduction.  I've been roadracing motorcycles for
the past two years, and have gotten serious during the '92 season.

I managed to obtain a few sponsors who have provided my with free product,
as well as substantial discounts on parts and service.  Along with prize
money, it could (although it isn't currently) potentially be a profitable
business venture (though not nearly enough to be a living).  I kept careful
track which expenses were personal (food, lodging, travel), and which were
directly racing related (tires, gas, parts, etc.)

Is there someway of deducting these expenses?  Could I also deduct interest
on loans I took out for buying the race bikes?  Was it necessary for me to
have declared racing as a business in advance (i.e. sometime last year)?
How would I go about setting up a business for tax purposes for the
upcoming year?  If I did set up some sort of business, would I be eligible
for dealer pricing on equipment?


Thanx in advance for any hints or ideas you may have,

Mike

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+------------------------+
| Mike Lee         |
| MPD6/Intel Corporation |
| [phone]         |
| [e-mail] |
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