Wow, I really shouldn't have added this up

I guess you were going to be eating anyway - unless you have taken to fasting at the weekends. That's $540 you could take off the total.

My record year was 14 regattas (including two week long events) and about 12,000 miles. I never put a pencil to the costs - figuring out I was still better off than if I had taken up motorsport as a hobby.

If you start factoring in things like spinnakers (an annual expense at least if you race and practice a lot) and amortize your main over 3 years it really starts to add up.

Then again there are no pockets in shrouds and I don't regret a cent of it.

Chris.

Just doing the Tybee and GT300 in the same year was about $8000. It would have been (still should be) more but I double stacked with Chris Green for the Tybee and he never told me what the fuel bill was. Anytime you come up with a number Chris, I'll be happy to fork it over. Sponsors helped out alot this year on the GT but without counting new sails, I doubt I could get away with under $3 to $4K a year.
Karl, put your business name on your boat and write some of it off as a business expense (advertisement).

Now whadya go and do that for Karl? <img src="<>/wink.gif" alt="wink" title="wink" height="15" width="15" />

My regatta expense is out of control. At least it's a business expense and I recoup some of it by selling you guys parts. Dragging chase boats and sailboats, parts trailer, gear, etc all over the western U.S. gets pricey. But dang do I meet some great people.

This summer, my runs to Hobie/ Performance were around $700. Now with Diesel back down they're down to around $400. There was a shortage of grease and the local Biofuel station went out of business. Seems that a bunch of hippies found out that you could run old Mercedes 300D's off of straight veg oil and the whole local biofuel thing collapsed <img src="<>/grin.gif" alt="grin" title="grin" height="15" width="15" /> So much for my secret stash of $.70 per gallon fuel.

There's a couple of serious road warriors here in Div 3. And, Gordo, Geeze. Homie should buy an oil well. He hits almost every regatta in Div 2 and 3. Does Gordo post here?

J

Yep,
Your right ,ya shouldn't have added it up. When we were doing Worrells, a shoestring team (like mine) would spend between 7-9k, my Tybees seem more in the range of 3k more or less depending on boatwork,sails etc..Some teams spent 30K+ on their Worrells. I try not to get too detailed, it seems to suck the fun out of it. Try offshore fishing or car racing and you'll see how affordable this is.
Todd

It's all relative.

The cost to take a Melges 24 to Key West Race Week is on the order of $10K. That's ONE regatta. Food / lodging for your crew, dockage, crane fees, etc., etc.

Of course, the boat set you back $65K to begin with.

Over the last ten years, I've spent an average of $6K per year on my

habit

. That doesn't include parts - like sails.

I'm not going to and you can't make me (add that stuff up).

I usually do 18 to 21 events a year including the Tybee 500, Tradewinds or Steeplechase in the keys (I quit doing both in the same year) and a North American Championship in some fashion. I'm not adding it up.

Use what Big Brother will allow on your vehicle ($0.585/mile) and watch your cost skyrocket. Using this calc, the

great deal

on the trailer I bought last weekend turns in to an $835 expenditure. <img src="<>/blush.gif" alt="blush" title="blush" height="15" width="15" />

It's all relative, this was the trailer I wanted, couldn't find one like it close to home and the wife and the doggy enjoyed the car ride.

We're off to buy a

$408.57

set of used beach wheels this weekend, and the girls are looking forward to another road trip. <img src="<>/grin.gif" alt="grin" title="grin" height="15" width="15" />

I've been thinking about setting up a business as a means of writing off expenses. I don't do nearly as many events as Jake does... and I don't know how you guys get so much time off work to do all the sailing you guys do AND have leftover time to go on family vacations...

I added up my costs for going to ONE regatta and it infuriated me! The wife and I had to add up all our costs and re-align our budget since I just bought a new awesome SUV. Regatta expenses came up as the #1

unbudgetted expense

when we re-did our budget spreadsheet.

well, there's your first problem... don't ask, don't tell <img src="<>/smile.gif" alt="smile" title="smile" height="15" width="15" />

You can write off the actual cost per mile. It doesn't work out for me as I write off the work related fuel expense seperatly from mileage. If diesel is at $3.75/gallon, my pickup costs $.66 every mile. If you've got a semi inexpensive vehicle and it gets rediculous good mileage like a TDI Jetta, the amount you write off almost pays for the vehicle.

I've thought about buying my next boat with the company checkbook, stickering it up, but eek. I don't break any laws but an audit doesn't sound friendly. Maybe start a non-profit, then I can charge the cabinet shop the going rate for advertising. I wonder what BMO, or Alingy charge per area? That would be a good rate to use. <img src="<>/grin.gif" alt="grin" title="grin" height="15" width="15" />

Why don't you build some nice wooden rudders and daggerboards for your boat? Maybe some sort of wooden thing to mount stuff on? Use it as a demo platform. That way you can write off the whole project. You might need to sell a few blades eventually.

I added up what I spend on horses in a year and I could buy a new I20 every year for the same price..... my wife was not impressed when I suggested this as an alternate way to spend my money....

Start up your own

Boat Charter

company. Travel to regattas to advertise it, but set your price so high that no one actually books any charters. Then write off the whole operation as a business loss, including the cost of the boat.

I suddenly realized that I can deduct the cost of any loan on my 31. It can be treated as a second house...
put a toilet and stove on your cat and add a cushion to sleep on and you might be able to claim it as a second home <img src="<>/smile.gif" alt="smile" title="smile" height="15" width="15" />

You can deduct the interest that way...not really the cost.

The fed has been tightening the tax write off's in the last several years and I suggest that if you do so, you have legitimate and detailed records on why the trip was a business expense (who, what, and why). It needs to be semi-believable because they will expect the detailed records and something to believe in should you get audited. Also, you can only show a business loss for three continuous years. Bonnie works too hard and I've never been able to show a loss though I do record some regatta trips as business trips but only when I can show that we donated the t-shirt design, made a product toward the regatta (shirts, awards), or legitimately had a purpose to discuss business with someone in the area.

right... thats what I meant. its something at least! couldn't you also deduct the insurance?

I think only if you owe more than 80% of the value of the asset and are legally required to have mortgage insurance. I think that's the only insurance you can take a deduction on....but I could be wrong.

Yes Matt, it is all Relative.

This year, one North Americans (H-17), six Div. 4 Regattas's, and three sailing outings. All campouts, except the NA's.

Three with Son Tom, seven with Grandson Dan.
PRICELESS !

Caleb H-17 6446
Tom H-17 6185
Dan, Wave, H-16, crew on Tiger and H-16

This is still by far the cheapest racing I've done. I've never had the budget for a M24 campaign, but when I raced motocross on quads I'd break something expensive every weekend. Plus a $15k machine was ready for its next life as a soup can at the end of each season. I'm so glad I never got into roadracing. I did a few track days, but I just couldn't swing road racing financially. Even on track days I'd take a brand new set of tires, (at about $200 a piece for DOT race compounds), and they'd be junk at the end of the day.

I don't think I'm complaining, just surprised.

Hire a CPA with a really sharp pencil to set up write offs.

I think this changed several years ago. They said you only have to make an attempt at running a business. You don't have to be successful... <img src="<>/whistle.gif" alt="whistle" title="whistle" height="15" width="15" />

That's been my plan all along! (sarcasm) <img src="<>/cry.gif" alt="cry" title="cry" height="15" width="15" /> Gawd this year has sucked! With the equipment that I bought this year, (total of only about $8k), the left over depreciation from last year, and the expenses from this year I might not have any taxable income this year. The good thing about things being slow, is that everyone else is slow too. A lot of cabinet shops going tits up, and I've gotten some rediculously good deals on used equipment.

It's a little more complicated than that.

The

three out of five

rule is part of Internal Revenue Code Section 183 (commonly called the

Hobby Loss Rule

) which is a determinant of whether an activity has a

profit making motive

. In general, you can only deduct

hobby

losses to the extent of gains - i.e. you can deduct your racing expenses against your winnings.

This would prevent anyone who has a regular day job from deducting regatta expenses from their regular income.

However, if you are a business owner (like Karl), who have an entity engaged in a

for profit activity

(cabinet shop), you can deduct expenses qualified under IRC Section 162 (ordinary and neccessary - like advertising)from your business income without regard to the

3 of 5

rule. However, the quantity of those dedections may come under scrutiny in the event of an audit (was the amount of advertising justified for the size of the business, etc.). For example - if advertising was the largest expense line item for a cabinet shop, it would certainly raise some questions.

As always, keep meticulous records and receipts when dealing with the IRS.

And, if you do get audited, don't take their first ruling as gospel if it goes against you. My dad did 30 years with the

revenuers

in a number of different jobs. The last one was Chief of Conference which was the last place you went before going to court. He told me 75% of their case load was computer entry error.

One year I was expecting about $400 back. Instead of getting the green check I go a form that said I'd paid minus $3.60. They wanted $1000 plus $1500 in penalties. I called dad, who prepared my return. He said he was going to the Fresno data center the next day to discuss the same kind of problems and would let me know what happened the next night.

The day went something like this. He went into the meeting where they shucked and jived him for an hour. He then asked them to pull my return but only gave them my SS#. They passed it around the room and said,

We're gonna screw this guy to the floor.

My dad asked,

Did anyone happen to see who prepared the return?

No one had.

My dad said,

IT WAS ME!!!

The rest of the day consisted of him raging through the building and them sounding like Yorkies that just has their feet stepped on.

I wish I'd been there. <img src="<>/laugh.gif" alt="laugh" title="laugh" height="15" width="15" />

You had to go and do that didn't you... I was fine with my head in the sand!!!

Since I don't race my cat, I spend very little per year on my boat. For example, relatively speaking, a

large

sailing expenditure for me last year was to buy $40 worth of line and $100 worth of Vertglass products. So to say the least, I was surprised at what some of you say you spend on sailing in a year. So this little topic prompted me to put together a sheet on my projected ski expenditures for this year.

Ugh!!! 2 trips west, a handful of planned weekends in MI, lift tickets, travel, hotels, etc... my spreadsheet says to plan on about $4k this winter. And that's not counting any spontaneous trips north to chase good snow storms (usually at least once or twice a year), or another set of used powder skis that I may or may not buy this year.

Now I'm beginning to feel shame...

Don't feel shame. According to the registration forms for 20 years of our doing sailing seminars, skiing is the number one second favorite sport of sailors. In fact, maybe for many it is the first favorite.

It's not shame.... it's a HOBBY.

Rarely do things we enjoy make monetary sense

Like crystalmeth <img src="<>/grin.gif" alt="grin" title="grin" height="15" width="15" />

14 regattas X $40.00 = $560.00
Average 400 miles each way at 20 mpg at $4.00 gal = $2240 in fuel 11200 miles
3 days each regatta camping at $ 20 a nite. = $840
One trashed Spin $1000
One trashed main $ 1500 (I got one used)
Annual cost of this fun $6140.00 (est. actual cost may differ)