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5. There is an exemption under 49 CFR, Part 390.3(f)(3) Exception: The occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise.
a. Question 21: Does the exemption in 390.3(f)(g) for the occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise apply to persons who occasionally use CMV (commercial motor vehicles) to transport cars, boats, horses, etc., to races, tournaments, shows or similar events, even if prize money is offered at these events?

Guidance: The exemption would apply to this kind of transportation, provided: (1) the underlying activities are not undertaken for profit. i.e. (a) prize money is declared as ordinary income for tax purposes, and (b) the cost of underlying activities is not deducted as a business for tax purposes; and, where relevant; (2) corporate sponsorship is not involved.

The above Question and Guidance from the US DOT just about says it all. It is a great exemption for the hobby racer, but really does not apply to those of you that are running your racing as a business.

To operate safely and in compliance with the law, there are tons of options and things you can decide to do or not to do. In the end, you need to make your own decisions. But, be assured of one thing; the State DOT is under pressure to enforce the Federal DOT laws in all scenarios. They are not picking on only the racers. This is hitting the lawn mowing services, professional bass fishermen, and anyone that is using the highways for transportation of their commercial business equipment.

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If the truck or motor home and trailer are registered to an individual, no expenses from racing are deducted on your state or federal taxes, and any income is reported on your personal tax forms, you are a Hobby Racer and only basic and common sense safety rules apply. I am sure we will get a lot of questions from readers on this article. If Jeff thinks we need an update, I am sure you will see it here in DragRacingOnline right away.

On a different note, I hope to meet some of you at the Million Dollar Race in Memphis over the September 22-25 weekend. DRO will be providing live and daily updates from the event. If you have ever wondered “how good are those guys” and “what did it take to win the best-paying bracket race in the world?” Well, in a few weeks you will actually find out and we hope to give you some round by round details from George Howard’s BTE/ Million Dollar Race.

Last but not least I want to thank all of you for your prayers and emails when I was going through my medical problems. The doctors and nurses got me all put back together and I am feeling fins again. I have joined the ranks of being an official cancer survivor and I have to admit I like the survivor part of that title. Anyway, thanks again and I hope all you and your families enjoy good health and each other as much as you possibly can.

 

Dead-On [7/8/05]
What next? Now the DOT is messing with racers






 
 

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