tax write offs

[GrInDeR400ex]

someone told me that you can write off certain hobbies on your taxes is this true and if so how can i go bout writin off the quad....lmao

[Woodsrider]

I write off the tools I buy to work on it, the equipment I bought to powder coat it, the pressure washer I bought to keep it clean, and a lot of the gas I burn in it. But I have yet to find a way to write off the quad itself.

Originally posted by soggyrider
I write off the tools I buy to work on it, the equipment I bought to powder coat it, the pressure washer I bought to keep it clean, and a lot of the gas I burn in it. But I have yet to find a way to write off the quad itself.


Do you have to have receipts, please enlighten me. I"m gettin my taxes done this week....:devil:

[quadman21]

I looked into that one time myself. Don't you have to have a company or a tax id to claim it? For instance, it was expalined to me that you could use your social# as your tax id then file your a race team expenses etc. under your tax id. Or something like that:confused: But aren't you only allowed to show a loss for so many years?

[pbarr86]

from the turbotax website

If You Have a Hobby
You can't deduct a net loss on a hobby. You can only deduct expenses up to the amount of income you reported from the hobby. If you have $1,000 of income and $3,000 of expenses for the year from your hobby activity, you can’t deduct the $2,000 net loss on your tax return, and you cannot carry forward to the next year the amount of hobby expenses that were disallowed this year.

But you may not even have a chance to deduct the $1,000 because you can only claim most hobby expenses as a miscellaneous itemized deduction. Miscellaneous expenses – which include job, investment, and tax-related expenses – are deductible only to the extent that they exceed two percent of your adjusted gross income.

As a result of this two-percent floor, you may have to resign yourself to the fact that you won't receive much, if any, tax benefit from your hobby.

You report your hobby income as other income on Line 21 of your Form 1040, Individual Income Tax Return.

[Woodsrider]

Originally posted by Rico
Do you have to have receipts, please enlighten me. I"m gettin my taxes done this week....:devil:

Rico, there's a catch here. I am a mechanic by trade so any "tool" I buy is a write off.:D As far as the gas..... well thats kinda shady, but in a nut shell I get to write off some gas as a work exspence each year as well, due to travelling back and forth to the training center 250 miles away. I save all my reciepts.

Back to the tool write off, any unreimburst work exspence is deductable if you have enough itemized deductions to meet the criteria. I spend an average of $2500 a year in tools, plus work boots, ASE testing fees, and other crap. That with my mortgage intrest, property taxes, and medical exspenses for my son keeps me in the 4.5% tax bracket :devil:

[quadman21]

Ok, what about this...Say you use your ss# for a tax ID and your small company is "Joe Smuckatelli's racing". Your company is a race team (not a hobby). Your goal is to win (make) money racing in a pro or A class with pay out. Than would it work?

[GrInDeR400ex]

well i own a farm so i called h&r block and they told me i can write off all my tools...i spent bout $3000 total last year on them and i just bought a 3/4 ton truck and she told me i will be able to write off part of that as well