Tax Write-Off: Prison Guard Cannot Write-off Go-Karts


When does a hobby become a business and its expenses can be used as a tax write-off? Mr. Phillip Doris attempted to write off expenses related to his Go-Kart racing. He has been a prison guard at San Quentin since 1982. According to the tax court:


"In 2006 petitioner worked an average of 60 hours per week, earning $178,528.00"


To successfully write off somethig like Go-kart racing, you have to TREAT IT LIKE A BUSINESS.


In this case, Mr. Phillips did not:

  • maintain accurate books
  • have a separate business account
  • advertise
  • have a business plan
  • did not have a profit motive similar to other go-kart companies


Doing the exact opposite of Mr. Phillips will go a long way to demonstrating that otherwise hobby expenses are legitimate expenses. If  you wish to write-off a business expense, you need to have a business.


If you need assistance with tax preparation, planning or resolution, contact us. We can help. Call us at 888-727-8796 or email info@irsmedic.com.