Auto racing is expensive at any level. Often, a racer looks to reduce the cost by treating it as a business activity to deduct the expenses.
Racers who do this have encountered mixed results when the IRS challenges their returns. If you are going to give this a try, it’s a good idea to understand how the tax rules apply, so your racing activity stands the best chance of being deductible.
Is it a business?
The pundits didn’t wait for the Monterey Car Week auctions to end before weighing in with banshee-like wails of market distress.
“Saturday night auctions fail to meet 2015 levels” The Los Angeles Times headlined before the Gooding auction on Sunday.
Bloomberg weighed in on Monday, “Monterey Auctions Continue to Slide after 2014 Peak.”
“Next month, if these trends continue, Cobras will be free!” (Okay, I made that one up.)
If you Read More
Following their win at Le Mans in 1953, where Duncan Hamilton and Tony Rolt led a veritable parade of C-types to three of the top four finishes, Jaguar faced a problem. The limits of the XK 120-based race car had been reached, and in order to remain competitive at Le Mans, a new car would be required.
While the C-type had been one of the first cars of its era to employ a steel-tube space frame, Read More
The Ferrari 250 California Spyder is unquestionably among the most recognizable and beloved sports cars of all time. While the origins of the legendary model have been well established and the entire production run carefully documented by devoted historians, the exceptionally rare competition variants were built to highly individualized specifications and do not fall into a single, all-encompassing category.
By 1950s standards, all that was required to transform a California into a serious racing car was Read More
The 8C 2900 was not a mere sports car, but the most advanced, modern and compelling sports car that money could buy. To the gentleman who was accustomed to watching the workings of his Swiss watch or mastering the intricacies of his yacht’s sails, it was a symphony.
It is a reality understood by those in racing circles that these high-performance Alfa Romeos and many other similar cars were simply tools used on a track, and Read More
In 1953, Stanley Arnolt purchased five sequential Aston Martin DB2/4 chassis and sent them to Carrozzeria Bertone to be fitted with custom coachwork. While the even-numbered chassis were fitted with opulent, luxurious bodies, 503, 505, and 507 were fitted with a distinctive sporting design penned by one of the most talented and prolific designers of the 1950s and 1960s, Franco Scaglione.
Scaglione’s credits include the incomparable Alfa Romeo B.A.T. cars, the Siata 208 CS coupe, the Read More
This very first Cobra, CSX2000, arrived in the United States in February 1962. It was personally picked up at the Los Angeles airport by Carroll Shelby and Dean Moon before being brought back to Moon’s shop, where they installed the 260-ci V8 Ford engine with a Ford gearbox in a matter of hours. And with that, CSX2000 was running.
The entire company’s finances rested on this prototype — and securing a successful deal for Shelby American Read More
1972 Iso Grifo Series II
Gooding & Company Lot 66, which sold for the “was everyone sleeping?” price of $511,500
Earlier this year, a good friend — and wonderfully overzealous lover of all things Iso — asked me if there was any chance this car could be worth $1 million, which was the owner’s dearest hope.
Say what?… Ummmm, no.
A few weeks passed, and then the partial-dose-of-reality asking Read More