Keeping Receipts

[Julie Jordan]

Originally Posted by Gary Smith

Besides proof of value in case of a sale or perhaps accounting purposes if you run a related business, does anyone else besides me keep receipts for racing related activity? This includes parts, labor, tools and equipment, travel, etc. Which ones should I keep and how long? Any valid tax reasons?

Gary ~ Unless you need the receipts for tax or insurance purposes, there is no real need to keep them. However, even if you don't claim the racing as a business but as a hobby you may still need the information for tax purposes. If you win money in any given year, you will be given 1099's. You claim this income as hobby income and expenses (up to the amount of income) as hobby expenses. Thus, you would want a record of the expenses to substantiate. I usually recommend you keep the receipts as long as the statute of limitations is open on the tax return (currently 3 years).