Keeping Receipts

[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?

[tim worner]

I keep all my shop & racing receipts for tav purpose in case of audit. Suppose to keep 7 yrs. I think.

[Jeff Lee]

Once I pulled my keys out of my pocket. The same pocket I had stuffed the machine shop invoice in to stash away. Out came the invoice. Didn't know it. My wife found it a few minutes later laying on the floor. Her eyes poped out of her head and boy, what a day that was! Come to think of it, it was a lot longer than a day...
Now, I destroy all receipts or in the case of the machine shop, don't even take one!

[goinbroke2]

HAHAHAHA!!!
Now that's funny Jeff....well not for you, but funny nonetheless.
I bought a tranny and shifter, shifter came from ebay about a week ago. She saw the email about being a winner/price/etc and said "I hope that's your christmas present"

Hope she never see's the tranny bill! Lol!

[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).

[Gary Smith]

Originally Posted by Julie Jordan

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.

Thanks for the advice Julie!!

Originally Posted by Jeff Lee

Once I pulled my keys out of my pocket. The same pocket I had stuffed the machine shop invoice in to stash away. Out came the invoice. Didn't know it. My wife found it a few minutes later laying on the floor. Her eyes poped out of her head and boy, what a day that was! Come to think of it, it was a lot longer than a day...
Now, I destroy all receipts or in the case of the machine shop, don't even take one!

Jeff, I think we're married to the same woman.....

[Jeff Lee]

Yea, gotta delete those PayPal and ebay emails ASAP!