The business is a racing team. I race autos and compete for money. I will be receiving a couple of 1099’s this year from sponsorships that I will need to claim as income.
I have quite of bit of expenses to net against my winnings (small) and sponsorship. The majority of these expenses are related to race fees, maintenance fees, gear, etc. However, I would claim a net loss this year.
I raced all through 2020 (first race in May) and registered the LLC in December. I just want to clarify if I can claim those expenses from the season against my sponsor money and winnings with the LLC?
If not, would I go the “hobby” route this year and just claim it on my personal taxes?
Please note it is a single member LLC, as I am the only member.
