Cup Car operating costs - read at your own risk!
12-19-2006 | 11:53 PM
#16
Three Wheelin'
Joined: Apr 2004
Posts: 1,979
Likes: 0
From: Northern VA
Originally Posted by chrisp
I often think about doing this but am unsure how to handle the vehicle itself. Did you depreciate the total cost of the car over a given number of years? Take the Fed's cents-per-mile number? Divide the future loss when you sell it by the number of years you plan to own it?
Well, this was supposed to be funny. As you can see CPAs have no sense of humor.
12-20-2006 | 12:09 AM
#18
Racer
Joined: Jan 2006
Posts: 492
Likes: 0
From: Columbus, OH
12-20-2006 | 12:13 AM
#19
Rennlist Member
Joined: Aug 2006
Posts: 41,958
Likes: 1,828
From: Carjackistan
Originally Posted by pyruvate
Holy shiiiite, that is HILARIOUS! Try Rennlist...BWHAHAHAHAAAAAA!!
12-20-2006 | 12:21 AM
#20
Racer
Joined: Jan 2006
Posts: 492
Likes: 0
From: Columbus, OH
12-20-2006 | 12:42 AM
#22
Rennlist Member
Joined: Oct 2004
Posts: 3,629
Likes: 60
From: Far, far away
Originally Posted by RSRRacer
Oh yea this also does not include the opportunity cost of all the workdays out of the office for thurs/fri practice....
12-20-2006 | 01:20 AM
#23
Three Wheelin'
Joined: Nov 2005
Posts: 1,852
Likes: 3
From: Long Island, NY
Originally Posted by RSRRacer
Well, in preparation for some of my year end tax planning, I spent some time calculating the total costs of my 2006 PCA effort.
Then I broke it down into cost per mile.
Roughly $15.
It costs more per mile to operate one of these cars than to rent a GulfStream. And they are alot slower than the jet....
Best $$$$ I have ever spent!
Then I broke it down into cost per mile.
Roughly $15.It costs more per mile to operate one of these cars than to rent a GulfStream. And they are alot slower than the jet....
Best $$$$ I have ever spent!
12-20-2006 | 07:53 AM
#24
Burning Brakes
Joined: May 2001
Posts: 1,199
Likes: 1
From: www.cupcar.net
Originally Posted by RSRRacer
Yes.
I established a separate business, Maximum Agility Racing. I receive sponsorship money for the operation of this business. In return for this revenue I commit to providing a certain volume of prospective business opportunities, etc. If I do not hit the target then I forego some or all of my sponsorship money.
The vehicle is not a passenger auto. It is a machine, and can be depreciated under S179 like any other piece of equipment. Any amont over a certain threshhold would not fall under 179 but regular depreciation.
Like any business, it cannot perpetually lose money or the IRS will not be happy. Mine has lost money in the past but will make money this year.
I am not an accountant but do work with a CPA .
I established a separate business, Maximum Agility Racing. I receive sponsorship money for the operation of this business. In return for this revenue I commit to providing a certain volume of prospective business opportunities, etc. If I do not hit the target then I forego some or all of my sponsorship money.
The vehicle is not a passenger auto. It is a machine, and can be depreciated under S179 like any other piece of equipment. Any amont over a certain threshhold would not fall under 179 but regular depreciation.
Like any business, it cannot perpetually lose money or the IRS will not be happy. Mine has lost money in the past but will make money this year.
I am not an accountant but do work with a CPA .
12-20-2006 | 09:29 AM
#25
Racer
Joined: Mar 2004
Posts: 286
Likes: 0
From: Swansea MA
from RSR
.
Am I doing this right RSR?
Average enduro 3 day weekend EST. 80min Fri/Sat and 105 Min Sunday for 240 min = 4 hours seat time @100MPH avg for 400 miles
400X$15 = $6000 thus a six weekend season $36,000 ($2000 per track day)
This does not sound like enough?
Man to run my normal season of aprox 24 days for under 50K all enclusive except for depreciation sound pretty good!!
Lucky for me I'm in a buisness were race car sponsorship is routine advertising expence, and I can tie a little travel into used equipment buying trips. Anybody want to buy a tractor? !!!
total costs of my 2006 PCA effort
Then I broke it down into cost per mile. Roughly $15.
Average enduro 3 day weekend EST. 80min Fri/Sat and 105 Min Sunday for 240 min = 4 hours seat time @100MPH avg for 400 miles
400X$15 = $6000 thus a six weekend season $36,000 ($2000 per track day)
This does not sound like enough?
Man to run my normal season of aprox 24 days for under 50K all enclusive except for depreciation sound pretty good!!
Lucky for me I'm in a buisness were race car sponsorship is routine advertising expence, and I can tie a little travel into used equipment buying trips. Anybody want to buy a tractor? !!!
12-20-2006 | 09:33 AM
#26
Mr. Excitement
Rennlist Member
Rennlist Member
Joined: Dec 2001
Posts: 5,439
Likes: 2
From: Fallschurch Va
Ouch! I am returning the very inexpensive to feed and care for 912 to street duty and building a light weight GT-4 that will end up a GT-3 or GT-2. Now thinking I might have made a mi$take (or 3).
Not that I would recommend this but have you done a cost comp on a weekend of good food, good hotel room, your favorite men’s sport that might not involve driving other than a golf cart or to the dive or fishing boat and a fresh "escort" for each night?
I read that Ferrari team in F1 spent $100,000 per race mile X 2 cars for the 2005 season.
Not that I would recommend this but have you done a cost comp on a weekend of good food, good hotel room, your favorite men’s sport that might not involve driving other than a golf cart or to the dive or fishing boat and a fresh "escort" for each night?
I read that Ferrari team in F1 spent $100,000 per race mile X 2 cars for the 2005 season.
12-20-2006 | 10:29 AM
#27
Race Car
Joined: Jun 2001
Posts: 4,878
Likes: 60
From: TX
Originally Posted by kurt M
Not that I would recommend this but have you done a cost comp on a weekend of good food, good hotel room, your favorite men’s sport that might not involve driving other than a golf cart or to the dive or fishing boat and a fresh "escort" for each night?
12-20-2006 | 11:34 AM
#29
Rennlist Member
Joined: Dec 2004
Posts: 3,918
Likes: 103
From: Danbury, CT, USA
Originally Posted by kurt M
I read that Ferrari team in F1 spent $100,000 per race mile.
Last edited by analogmike; 12-21-2006 at 01:17 AM.
