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!

BostonDMD

So that is what I have to look forward to......

Congrats in being able to afford it!

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 r the number of years you plan to own it?

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?

chrisp

sorry for the double post, computer was hanging up and I didn't know it processed the first time.

JimmiLew

This is a smiles per dollar equation. When you are winning, lotsa smiles! When hanging mid pack....not so many smiles. I guess I need to spend more dollars so I can smile more! NOT!

It is scary how fast the costs add up for any race car, let alone a Cup Car. But man, they are a hoot to drive!

JL

RSRRacer

As an addendum, this cost does not include any vehicle depreciation, but does include everything else. The vehicle depreciation is actually not that much for a 996 cup.

Oh yea this also does not include the opportunity cost of all the workdays out of the office for thurs/fri practice...... This may eclipse the operating costs!!!

bmoore

Chris,

I just want to know how you are writing off any of the racing expenses and cup car costs? I asked my account and he just laughed!

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 .

spazegun2213

Quote:

Originally Posted by RSRRacer

Yes.

I established a separate business, Maximum Agility Racing.

I envy that more than a super car. Someone who turns racing into their business, thats an accomplishment and very cool.

and at $15 a mile, think of it as REALLY expensive gas

analogmike

It all averages out, $15 is not bad, it's usually less than that. My Glen race was $191 per mile and that included a little practice, the sprint race, and one hour of the 90 minute enduro, was running behind Norm and you, 3rd overall

Screws up the whole years average.

I fondly remember running in E for $1500 all inclusive, now that won't cover the tires

But which car do I choose to run

Juan Lopez

Its cheaper (and more fun) than a therapist or lost wages due to mental illness. Heck, that's my excuse anyway.

owner944

Say, isn't that the same CPA that takes care of Wesley Snipes???

Larry Herman

Real rough calculations on my Daytona race came in at $16.5 per mile, but that included lodging, airline transportation, trucking the car down and paying for the crew as well as all of the usual expendables.

hacker-pschorr

Hmm, PCA 3-day DE

4 - 20 minute sessions per day
Let's just day 6 laps per session
72 laps for the weekend = $1,080

Damn - anyone care to rent me their cup car next Memorial Day weekend?