Depending on what type of business you own it could give you the freedom to travel to races also using the running costs of your race car as deductions come tax time. You might have to move back to this side of the island to be closer to National racing can i still call it National racing?.
But to be honest if i couldn't write my costs off i wouldn't do it. Because it really is a great waste of money so my wife keeps telling me.
I know a lot of people do write the costs off come tax time, but in what ways? I just don't know how so much can be written off? Would love to know how. Is it only certain sorts of businesses that can do it?
If you start your own business, you will have to concentrate on that to get it up & running. So you will not have time or money in the beginning to race for a while.
Whatever money you claim , will only be matched by extra you couldn't. It all comes back to you spending whatever spare cash on your hobby ,plus a little bit more But don't let any of this info put you off having a go at it, if the opportunity arises.
I have run my own business for several years and only just got back into racing after 20 years. The pros for me far outweigh the cons as I have other people to run it while I am away but if you are starting up by yourself every day your away is lost earnings. A lot of costs of racing can be written off against the business if you have the cash flow, but for LEGITIMATE tax purposes you can not write off total sponsorship of your racing costs against your business unless the advertising has a justifiable return to your business, which is very rare. (From the tax office) I will always respect someone who has a crack, but I still do twice the hours in my own business than I would if I was still working for a wage. Read a book titled 'The E Myth, by Michael Gerber. The big benefit for me is sanity. I've always been a petrol head and don't get it home or at work.
when i started working for myself i had no money(divorce doesnt help)so i decided to build up the business,11years later,finances are ok but too busy for any spare time for racing,the business has paid for alot of things apart from the rebuilt buggy,lathe, mill, tig,etc all taxable and helps at the end of financal year(immensely)
Its an interesting concept, i have worked for myself made good money but nearly killed me and got divorced. Now i have a lady that loves off road racing(and bought my frame) and a great job for a company that i am proud to work for. So its all good and i can go racing and not feel guilty that i should be at work.
At the end of the day whether the money is tax deductible or not its your money. Plenty of people go broke trying not to pay tax. It did piss me off when people would say that i could claim things on my business like it was money i had won, either way you work for it. You cant go racing in your next lifetime.
