Advertise on Bikeforums.net



User Tag List

Page 1 of 3 123 LastLast
Results 1 to 25 of 63
  1. #1
    Giving you the business. Cypress's Avatar
    Join Date
    Jan 2006
    Location
    Corvallis, Oregon
    My Bikes
    Ridley Noah, Giant Trinity Advanced, Specialized Crux
    Posts
    4,441
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Attention Racers:

    Because of the amount of money I put into racing each year, H&R Block decided it was best to make my hobby into a "business". I saved $400 on my return because of this.

    If you have a company do your taxes, ask about it.
    Quote Originally Posted by Moderator
    Dear Cypress,

    You have received an infraction at Bike Forums.

  2. #2
    S.D.M.F. BlessedHellride's Avatar
    Join Date
    Apr 2006
    Location
    MN Chapter
    My Bikes
    Scott Speedster S1, Research Dynamics MTB
    Posts
    584
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Since it is now a business that makes you a Pro right!
    "you can never get too low when you're so damn high, on the blessed hellride"

  3. #3
    Senior Member GaryA's Avatar
    Join Date
    Jan 2007
    Location
    Canby, Oregon
    My Bikes
    Gary Fischer mtb, Specialized Allez, Cannondale Jekyl, Trek 8700, Motobecane Sprint (just ordered)
    Posts
    189
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Yep now he is sponsored.
    2007 Motobecane Sprint
    2003 Cannondale Jekyll
    1992 Specialized Allez
    1991 Trek 8700

  4. #4
    Vanned. worker4youth's Avatar
    Join Date
    Jul 2005
    My Bikes
    2006 Motobecane Le Champ SL, 2006 Mercier Kilo TT, 2004 Gary Fisher Tassajara
    Posts
    1,244
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Cypress sponsored by the IRS...now I'd like to see THAT team jersey!

  5. #5
    It is fantastic. voltman's Avatar
    Join Date
    Aug 2005
    Location
    The OC
    My Bikes
    05 Specialized Allez Elite; 06 Fuji Team Pro
    Posts
    7,978
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

  6. #6
    Banned. El Diablo Rojo's Avatar
    Join Date
    May 2006
    Location
    ATX, Ex So Cal
    My Bikes
    Ridley Noah-Scott Addict-Orbea Ordu
    Posts
    11,058
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by worker4youth
    Cypress sponsored by the IRS...now I'd like to see THAT team jersey!

    I've seen the jersey. It has guy bent over, his pants around his ankles and a very pained expression on his face while Uncle Sam is behind him with a big fat grin.

  7. #7
    Senior Member
    Join Date
    Apr 2002
    Location
    NYC
    Posts
    915
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Does this make sense??

    http://www.bankrate.com/brm/itax/tips/20010403a.asp



    Quote Originally Posted by Cypress
    Because of the amount of money I put into racing each year, H&R Block decided it was best to make my hobby into a "business". I saved $400 on my return because of this.

    If you have a company do your taxes, ask about it.

  8. #8
    Throw the stick!!!! LowCel's Avatar
    Join Date
    Apr 2003
    Location
    Charleston, WV
    My Bikes
    GMC Denali
    Posts
    17,591
    Mentioned
    19 Post(s)
    Tagged
    1 Thread(s)
    I would consider that but I would be a complete laughing stock for starting up the least succesful business ever!
    I may be fat but I'm slow enough to make up for it.

  9. #9
    Announcer EventServices's Avatar
    Join Date
    Jan 2005
    Location
    In the drops.
    My Bikes
    Too many and not enough
    Posts
    4,998
    Mentioned
    3 Post(s)
    Tagged
    0 Thread(s)
    This is the USA. When it comes to taxes, it's not about being successful.

    Smart stuff, Cypress.

  10. #10
    Senior Member howsteepisit's Avatar
    Join Date
    Oct 2005
    Location
    Eugene, OR
    My Bikes
    Mecian
    Posts
    2,988
    Mentioned
    5 Post(s)
    Tagged
    0 Thread(s)
    I am with the IRS in Bozeman. Could we schedule a "meeting" Mr. Cypress?

    "Everybody has to pay taxes, even businessmen who lie and cheat and steal everyday have to pay taxes"
    Recycle, Reclaim, Reuse and Repair
    The 4 Rs to save the planet

    "Toes"

  11. #11
    Senior Member howsteepisit's Avatar
    Join Date
    Oct 2005
    Location
    Eugene, OR
    My Bikes
    Mecian
    Posts
    2,988
    Mentioned
    5 Post(s)
    Tagged
    0 Thread(s)
    I am with the IRS in Bozeman. Could we schedule a "meeting" Mr. Cypress?

    "Everybody has to pay taxes, even businessmen who lie and cheat and steal everyday have to pay taxes"
    Recycle, Reclaim, Reuse and Repair
    The 4 Rs to save the planet

    "Toes"

  12. #12
    Aut Vincere Aut Mori Snuffleupagus's Avatar
    Join Date
    Nov 2004
    Location
    Chapel Hill, NC
    My Bikes
    Irish Cycles Tir na Nog, Jack Kane Team Racing, Fuji Aloha 1.0, GT Karakoram, Motobecane Fly Team
    Posts
    4,166
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Did anyone read the link R600 posted?

    It makes sense to me...I know I've spent A LOT more than 2% of my gross income on bike racing this year.

  13. #13
    Senior Member
    Join Date
    Apr 2002
    Location
    NYC
    Posts
    915
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    This is even a better explanation:

    http://www.nolo.com/article.cfm/Obje...1/159/264/ART/

    Quote Originally Posted by Snuffleupagus
    Did anyone read the link R600 posted?

    It makes sense to me...I know I've spent A LOT more than 2% of my gross income on bike racing this year.

  14. #14
    Giving you the business. Cypress's Avatar
    Join Date
    Jan 2006
    Location
    Corvallis, Oregon
    My Bikes
    Ridley Noah, Giant Trinity Advanced, Specialized Crux
    Posts
    4,441
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by howsteepisit
    I am with the IRS in Bozeman. Could we schedule a "meeting" Mr. Cypress?

    "Everybody has to pay taxes, even businessmen who lie and cheat and steal everyday have to pay taxes"

    LOL. It's all legit. My "business" is taking a loss this year.
    Quote Originally Posted by Moderator
    Dear Cypress,

    You have received an infraction at Bike Forums.

  15. #15
    Racing iS my Training Pizza Man's Avatar
    Join Date
    Sep 2005
    Location
    San Francisco
    My Bikes
    07 Bianchi San Jose, 08 Tarmac SL2, 05 Cervelo P3
    Posts
    1,263
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Very interesting.
    I never considered deducting my cycling costs as losses, I just figured that as long as my costs (about $6,000.00 in 2006) exceeded my winnings (about $700) I would just not report my winnings. But since I could potentially be profitable in a few years , maybe I should start declaring my losses right now. I figure I could save about $1,000 from my taxes. That would buy another nice set of wheels.

    Is there an IRS business code for professional cyclist? Or at least professional athlete?

  16. #16
    Racing iS my Training Pizza Man's Avatar
    Join Date
    Sep 2005
    Location
    San Francisco
    My Bikes
    07 Bianchi San Jose, 08 Tarmac SL2, 05 Cervelo P3
    Posts
    1,263
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    I was wondering which expenses would be ok to deduct?

    Race entry fees?
    Travel to/from races & lodging?
    Equipment?
    Clothing?
    Race fuel?
    Food consumed on training rides?
    Travel to/from training rides?
    Coaching?

    Anything else?

  17. #17
    Senior Member
    Join Date
    Jan 2006
    Location
    Ft Mill, SC
    My Bikes
    Parlee Z4, Storck C1.1
    Posts
    1,170
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    With all the money I can save by claiming my losses, I can easily pump those savings into next years loss claim, getting even more back. Taking the following years increased savings and putting it into the year after that.........

  18. #18
    Aut Vincere Aut Mori Snuffleupagus's Avatar
    Join Date
    Nov 2004
    Location
    Chapel Hill, NC
    My Bikes
    Irish Cycles Tir na Nog, Jack Kane Team Racing, Fuji Aloha 1.0, GT Karakoram, Motobecane Fly Team
    Posts
    4,166
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Pizza Man
    I was wondering which expenses would be ok to deduct?

    Race entry fees?
    Travel to/from races & lodging?
    Equipment?
    Clothing?
    Race fuel?
    Food consumed on training rides?
    Travel to/from training rides?
    Coaching?

    Anything else?
    Brilliant!

    I didn't even think of deducting excess food

    I can see the audit now "You see, a normally active person of my size would need ~2,500 calories per day. I consume 4-5,000 on long ride days, therefore I needed to write off 3,000 dollars of extra bananas, oatmeal, spaghetti and protein powder"

  19. #19
    Senior Member
    Join Date
    Jul 2005
    Location
    Toronto
    Posts
    762
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by R600DuraAce
    is there a tax deduction for dialing it up to 400w?

  20. #20
    Blast from the Past Voodoo76's Avatar
    Join Date
    Mar 2005
    Location
    Schertz TX
    My Bikes
    Ridley Excal
    Posts
    2,498
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by EventServices
    This is the USA. When it comes to taxes, it's not about being successful.

    Smart stuff, Cypress.
    With taxes, if anything, its the opposite.

  21. #21
    Dirt-riding heretic DrPete's Avatar
    Join Date
    Aug 2005
    Location
    Gig Harbor, WA
    My Bikes
    Lynskey R230/Red, Blue Triad SL/Red, Cannondale Scalpel 3/X9
    Posts
    17,416
    Mentioned
    2 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by pcates
    is there a tax deduction for dialing it up to 400w?
    no, but it's $10 for every "OMG Poseur" you drop in an arbitrarily declared race during the fiscal year.
    "Unless he was racing there was no way he could match my speed."

  22. #22
    Senior Member
    Join Date
    Jul 2005
    Location
    Toronto
    Posts
    762
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by DrPete
    no, but it's $10 for every "OMG Poseur" you drop in an arbitrarily declared race during the fiscal year.
    well someone should be getting a big fat refund!!
    there will come a time when there will not come a time.

  23. #23
    Cat WTF
    Join Date
    May 2006
    Posts
    1,297
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    I actually own a business and my business sponsors my team. All cycling related mileage gets written off as well as hotels, food on trips, etc. Sadly, I can't write off any new Orbeas or Powertaps.

  24. #24
    pan y agua merlinextraligh's Avatar
    Join Date
    Aug 2005
    Location
    Jacksonville
    My Bikes
    Wilier Zero 7; Merlin Extralight; Co-Motion Robusta; Schwinn Paramount; Motobecane Phantom Cross; Cervelo P2; Motebecane Ti Fly 29er
    Posts
    27,416
    Mentioned
    10 Post(s)
    Tagged
    0 Thread(s)
    This is why you shouldn't let H&R Block do your taxes. This sort of deduction is a high risk audit flag. And there is a profit test to distinguish Hobbies from businesses. If you don't make a profit in a certain number of years, its a hobby not a business. And if you don't have a reasonable expectation of making a profit, you can't deduct losses.

    You'll also need to account for future race winnings. (If you don't next year, the IRS may inquire, based upon last year's return.)

    Without any track record of a profitable year, a business plan, business license, evidence that you treat it like a business, etc. this is a very aggressive position, not likely to be sustained if caught on audit.

    If you've got a pro license, or you're a Cat 1, and have no other signficant source of income, then it makes sense to truely treat it like a business, account for it as such, and treat it as such on your taxes.

    If you're a Cat 3 with $700 in winnings, enough income from a real job to worry about taxes, and show a $3000 loss year after year, it is not going to fly. You're really just banking on not getting audited.

    Do you really want to go around knowing that if you ever do get audited you're going to owe a nice little bill for the last 3 years deduction, plus interest, and possible penalities?

    You got to ask yourself, is it worth $400 for the risk and aggrivation?
    Last edited by merlinextraligh; 01-11-07 at 08:43 AM.

  25. #25
    Eternal Cat3 Rookie branman1986's Avatar
    Join Date
    Jul 2006
    Location
    Atlanta, GA
    My Bikes
    2004 Giant TCR2 Composite & 2006 Fuji Touring
    Posts
    1,169
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Without any track record of a profitable year, a business plan, business license, evidence that you treat it like a business, etc. this is a very aggressive position, not likely to be sustained if caught on audit.
    pretty much what I was thinking...I'm surprised they gave you that advice. You have to expect to be profitable eventually, I think by your 3rd year. Sounds like you're asking to get audited. If you paid for all bike expenses with a different business account(not your personal), it would look better.

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •