Has anyone deducted their mods under hobby expense on their taxes? And are you still a free person?

 

Nope, oh wait, I don't have any yet Although, I should soon be getting a nice intake for my 2k1. I would say within the next couple months. Go me!

Stevo

 

Never heard about this??? How does it work??? Is it worth it???

 

cant you deduct it as hobby expense?

 

I'm in outside sales. I deducted every penny I spent on my car as "maintenance".

 

sure...and while you're at it, go buy that book by that guy, I forget his name but he explains how you are not obligated by law to pay income tax.

cheat the gov't....go ahead...I'll visit ya in solitary and bring you a cake with a hacksaw in it like Ma Beagal does...

 

Ha! I miss the Ducktales cartoon.

How are you cheating the government if you ARE modding your car as a hobby. It's an option to deduct when you are doing your taxes, so why not take it if you want.

 

I think it has to be a hobby that you make money on as well. For example, if you did detail work on the side, and had to buy a sh!tload of supplies for it, you'd be able to deduct it. It's like a business expense deduction, except in case of a hobby, you don't have any official papers for it.

 

If you use your car for work, then you can write off pretty much anything you buy for it.

If you honestly think only paying the government 25% of your total income versus 35%, you certainly have a warped sense of logic on what is fair.

 

Except in that case, the gov't is gonna ask "Where's the income reported for your detail work? You should be paying income tax on that; fork it over."

 

blah...whatever....when it comes to gov't and IRS, I still free and clear.....yeah I always owe them $$$, but screw it....I'm not wearing stripes, so I'm a happy camper

 

Well, there's obviously more restrictions on it (if you have a full-out business, then you're right, but if you do it occasionally, then it's different). Like I said, I'm not exactly sure, but I recently did my taxes, and remember coming across this issue. I don't know all the specifics, but I remember it mentioning something about you having benefitted monetarily from the hobby.

 

I'm a C.P.A. in the state of N.Y. so I suppose i'm the most educated to answer this question. The answer in it's simplest form is NO, you can not simply deduct mods done to your car as a hobby expense. Although, what is stated in the U.S. Master Tax Guide and what people actually do is two different things. In order to deduct auto expenses you have to use that auto either as an employee for your job, or, use your auto for your own business. Next, if you use your auto for business relations and personal use youy have to allocate the portion used for business and the portion used for personal. The business portion is obviously the only portion that is deductible. Now, you can use either the standeard mileage rate, which currently for 2003 is .36 per mile, or use actual expenses incurred. If you chose to use the actual expenses, you must keep all receipts and a log of all the expenses related to the auto (ie. fuel, service, maintenance, etc.). At the end of the year these expenses can be deducted on either Form 2106 "Employee Business Expenses" or on a Schedule C which is used if you have your own business or "hobby". Some of the things people said earlier are sort of true. First, you must be using the car to derive income in order to deduct expenses from it. Secondly, you could, if you stretched it, say that some mods were maintenance and no one would know the wiser. I mean, heck, there are tons of deductions people take without ever getting caught. But if you ever get audited and the IRS auditor ask to see a receipt for that In-Dash DVD player that you claimed as maintenance on your tax return, well, let's just say, "don't drop the soap". Hope i helped some of you out.