mitchntx
09-22-2006, 11:23 AM
I was a little rattled by the DOT troopers we stopped and chatted with at the Texas weigh station on I30.
So, I've been doing a lot of searching and asking of questions trying to get to the bottom line. Here is about as close as I have found that would directly apply to 99% of us.
http://www.dragracingonline.com/archives.html
Find the September 2005 edition and look for the "Dead On" column.
Cliff notes ...
2 categories:
Hobby = don't worry about it.
Commercial = must comply with DOT regs
26,001 lbs total rig weight max
Rig is titled to an individual - hobby
Rig is titled to a business - commercial
Recieve prize or sponsor money:
Claim it as personal income and take no expense deductions - hobby
Depreciate rig, travel expenses, maintenance - commercial
If you recieve a 1099 from a promoter - potentially commercial
The following is a quote from the article and clears a lot of the air ...
There is an exemption under 49 CFR, Part 390.3(f)(3) Exception: The occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise.
Question 21:
Does the exemption in 390.3(f)(g) for the occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise apply to persons who occasionally use CMV (commercial motor vehicles) to transport cars, boats, horses, etc., to races, tournaments, shows or similar events, even if prize money is offered at these events?
Guidance:
The exemption would apply to this kind of transportation, provided: (1) the underlying activities are not undertaken for profit. i.e. (a) prize money is declared as ordinary income for tax purposes, and ( B) the cost of underlying activities is not deducted as a business for tax purposes; and, where relevant; (2) corporate sponsorship is not involved.
Well, that certainly makes me re-think my plans ....
So, I've been doing a lot of searching and asking of questions trying to get to the bottom line. Here is about as close as I have found that would directly apply to 99% of us.
http://www.dragracingonline.com/archives.html
Find the September 2005 edition and look for the "Dead On" column.
Cliff notes ...
2 categories:
Hobby = don't worry about it.
Commercial = must comply with DOT regs
26,001 lbs total rig weight max
Rig is titled to an individual - hobby
Rig is titled to a business - commercial
Recieve prize or sponsor money:
Claim it as personal income and take no expense deductions - hobby
Depreciate rig, travel expenses, maintenance - commercial
If you recieve a 1099 from a promoter - potentially commercial
The following is a quote from the article and clears a lot of the air ...
There is an exemption under 49 CFR, Part 390.3(f)(3) Exception: The occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise.
Question 21:
Does the exemption in 390.3(f)(g) for the occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise apply to persons who occasionally use CMV (commercial motor vehicles) to transport cars, boats, horses, etc., to races, tournaments, shows or similar events, even if prize money is offered at these events?
Guidance:
The exemption would apply to this kind of transportation, provided: (1) the underlying activities are not undertaken for profit. i.e. (a) prize money is declared as ordinary income for tax purposes, and ( B) the cost of underlying activities is not deducted as a business for tax purposes; and, where relevant; (2) corporate sponsorship is not involved.
Well, that certainly makes me re-think my plans ....