Registering New Track Car
#1
Registering New Track Car
Hello,
I am new to Rennlist (thank you, Lindsey and Tom), and I just purchased a dedicated 964 track car. It's an ex-PBOC R-5 racer, and I am extremely excited to run it as well as very happy to get my C4S (the snowplow) off the track.
I am planning to title the car with a regular Florida title. I was also planning not to register the car so I can use it as an tax-saving advertising medium and avoid liability insurance on it, as liability insurance is required by law in Florida for all registered road-going vehicles. The car is going to be trailerd and driven only at HPDE's and TT's for now - no road use whatsoever.
Is there any disadvantage to this plan? Anyone in Florida have the same setup? I am planning on STP insurance through Heacock, but I am going to avoid track insurance - I've read the disheartening threads on it - and I understand track liability insurance is covered buy the sanctioning bosy for each event.
I know this is a novice/not fun/technical question, but I promise to make up for it by meeting many of you (maybe again?) on the track.
Cheers, David
I am new to Rennlist (thank you, Lindsey and Tom), and I just purchased a dedicated 964 track car. It's an ex-PBOC R-5 racer, and I am extremely excited to run it as well as very happy to get my C4S (the snowplow) off the track.
I am planning to title the car with a regular Florida title. I was also planning not to register the car so I can use it as an tax-saving advertising medium and avoid liability insurance on it, as liability insurance is required by law in Florida for all registered road-going vehicles. The car is going to be trailerd and driven only at HPDE's and TT's for now - no road use whatsoever.
Is there any disadvantage to this plan? Anyone in Florida have the same setup? I am planning on STP insurance through Heacock, but I am going to avoid track insurance - I've read the disheartening threads on it - and I understand track liability insurance is covered buy the sanctioning bosy for each event.
I know this is a novice/not fun/technical question, but I promise to make up for it by meeting many of you (maybe again?) on the track.
Cheers, David
#2
Race Director
My 944 spec car is not registered, but has an Az title.
Any damage that occurs on track to my car due my mistakes or anyone else is 100% my responsiblity. Given that my track car is worth 10k, I don't even have STP.
There are many race cars like this.
Any damage that occurs on track to my car due my mistakes or anyone else is 100% my responsiblity. Given that my track car is worth 10k, I don't even have STP.
There are many race cars like this.
#3
"...and I understand track liability insurance is covered buy the sanctioning bosy for each event"
Just an FYI in most DE events the driver is responsible for any damage they may cause.
Just an FYI in most DE events the driver is responsible for any damage they may cause.
#7
Drifting
If you think you will ever return it to street duty, or sell it to someone who will, it may be worth paying to register it as a non-op. In CA it is cheap to do a non-op and then there are no late fees or anything should you register it for the street down the road.
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#8
Herr Unmöglich
Rennlist Member
Rennlist Member
Same. My car just went off its last set of tags and I am not renewing. Canceled the insurance on it last week. That's the end of the road, figuratively, for this car. The old plates as seen in my avatar now hang from my garage wall.
#9
Rennlist Member
Join Date: Aug 2004
Location: Land of the Old People
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David-
I think I saw your car at Gulf Performance today. VERY clean car you're about to take to the track! I'll be at the NASA race at Homestead in a couple of weeks. I also race R3 in PBOC. Not sure if you'll be ready by then but come by and see me. Vinny has my number and e-mail.
As for your question, I have the exact set up you are inquiring about. No issues.
I think I saw your car at Gulf Performance today. VERY clean car you're about to take to the track! I'll be at the NASA race at Homestead in a couple of weeks. I also race R3 in PBOC. Not sure if you'll be ready by then but come by and see me. Vinny has my number and e-mail.
As for your question, I have the exact set up you are inquiring about. No issues.
#10
King of Cool
Rennlist Member
Rennlist Member
David-
I think I saw your car at Gulf Performance today. VERY clean car you're about to take to the track! I'll be at the NASA race at Homestead in a couple of weeks. I also race R3 in PBOC. Not sure if you'll be ready by then but come by and see me. Vinny has my number and e-mail.
As for your question, I have the exact set up you are inquiring about. No issues.
I think I saw your car at Gulf Performance today. VERY clean car you're about to take to the track! I'll be at the NASA race at Homestead in a couple of weeks. I also race R3 in PBOC. Not sure if you'll be ready by then but come by and see me. Vinny has my number and e-mail.
As for your question, I have the exact set up you are inquiring about. No issues.
I'm instructing at PCA/PBOC at Homestead in three weeks, I'll stop by.
#11
Thanks Guys
Thank you for the info! I'm going to go tagless on my car.
Peter, my car is actually in Largo at Germantech (Joe Vatter). It's Scott Krejci's old midnight 964-2. I going to be at NASA Sebring next Saturday with my car (if the fuel cell and Halon system are ready...), otherwise, I'll be there with my street car. Looking forward to meeting you.
Any details about the IRS red flags when advertising?
Thanks Again,
David
Peter, my car is actually in Largo at Germantech (Joe Vatter). It's Scott Krejci's old midnight 964-2. I going to be at NASA Sebring next Saturday with my car (if the fuel cell and Halon system are ready...), otherwise, I'll be there with my street car. Looking forward to meeting you.
Any details about the IRS red flags when advertising?
Thanks Again,
David
#12
Race Car
Here are links to two discussions about sponsorship and the viability of deducting race/DE expenses.
https://rennlist.com/forums/racing-and-drivers-education-forum/269302-what-s-necessary-to-qualify-de-tt-costs-as-a-business-expense.html
https://rennlist.com/forums/racing-and-drivers-education-forum/164029-sponsorship.html
I'm not an expert on it at all. I looked into it with two of my accountants, and hit a brick wall both times (but this was just with regard to my own corporation, which could not be less 'racing related.')
It seems like the two main issues are 1) proving the legitimate value to a company of advertising in a race/DE environment, especially when it involves an existing hobby and the absence of an 'arm's length transaction,' and 2) proving the viability of racing/DE as a way to make actual money, above and beyond what might be put back into actually doing the activity.
Neither seems easy, but that doesn't mean that there aren't guys trying it and (sometimes -- for a while, at least) getting away with it. As it is with racing, you need to decide on what level of insane and stupid risk you're willing to put up with.
https://rennlist.com/forums/racing-and-drivers-education-forum/269302-what-s-necessary-to-qualify-de-tt-costs-as-a-business-expense.html
https://rennlist.com/forums/racing-and-drivers-education-forum/164029-sponsorship.html
I'm not an expert on it at all. I looked into it with two of my accountants, and hit a brick wall both times (but this was just with regard to my own corporation, which could not be less 'racing related.')
It seems like the two main issues are 1) proving the legitimate value to a company of advertising in a race/DE environment, especially when it involves an existing hobby and the absence of an 'arm's length transaction,' and 2) proving the viability of racing/DE as a way to make actual money, above and beyond what might be put back into actually doing the activity.
Neither seems easy, but that doesn't mean that there aren't guys trying it and (sometimes -- for a while, at least) getting away with it. As it is with racing, you need to decide on what level of insane and stupid risk you're willing to put up with.
#14
I agree with Jack on the problems with deducting racing/de expenses advertising.
As a CPA, I've looked at this issue a couple of times. We had a client (aftermarket car part manufacturer/installer - appearance modifications only) who deducted all of his sprint car expenses and they were audited. It was an issue with the auditor, but they ended up allowing the deduction
If you decide to deduct the expenses, be sure to track the success of the advertising if possible. If you can show you are generating revenue from the spending it will be a big help in front of the IRS.
As a CPA, I've looked at this issue a couple of times. We had a client (aftermarket car part manufacturer/installer - appearance modifications only) who deducted all of his sprint car expenses and they were audited. It was an issue with the auditor, but they ended up allowing the deduction
If you decide to deduct the expenses, be sure to track the success of the advertising if possible. If you can show you are generating revenue from the spending it will be a big help in front of the IRS.
#15
My firm's website is on my windshield banner and I have told a track friend of mine (orthopedic surgeon) I'll build his lake house at a reduced rate just so I can then justify writing off the car as an advertising expense. I figure I can write off alot more than the deduction I'll have to give him..
But until he signs the contract I'm not going to try it...
But until he signs the contract I'm not going to try it...