Bike riding: A sweet tax deduction?

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Lee,
If you are a pro, can you deduct bike related stuff on your taxes? I always wondered what you could get away with.
Thanks.

Hey,

Disclaimer: I am neither an accountant nor a tax attorney, so don’t base your financial future on my advice. Definitely talk to your tax person.

Yes. If you derive income from bike riding, you can deduct your bike-riding expenses. If you can tie all of your riding, training, travel and parts expenditures to the money you make as a rider, it’s all fair game.

If your riding is half business and half pleasure, you can deduct half of your riding expenses. If your riding is 75% fun and 25% business, you can deduct 25%.

A significant portion of my [puny] income comes from bike coaching, selling bike books, writing bike articles and copywriting for bike companies. If I’m on a bike, I’m either teaching, training or researching. I deduct all of my bike expenses.

Note: There is a rule that says you must turn a profit in a certain number of years. If you always show a loss, you can’t claim your bike expenses. Ask your tax person.

Very few people make money riding bikes. If you’re one of them, bike riding is a sweet tax deduction!

Braaap,

— Lee

2 replies
  1. jimmy says:

    “Note: There is a rule that says you must turn a profit in a certain number of years. If you always show a loss, you can’t claim your bike expenses. Ask your tax person.”

    That’s the hobby loss rule. If you fall under the hobby loss rule you can still taking deductions but only to the extent of your income. In other words you can’t take a loss on your return but at least you can zero out any income you made.

    “If your riding is half business and half pleasure, you can deduct half of your riding expenses. If your riding is 75% fun and 25% business, you can deduct 25%.”

    I’m not sure how you can separate the business from the fun. It’s alway fun to me so I would say 100% is business. You might have to separate the pleasure portion if your wife or kids are with you on a trip.

    ugh, tax season is around the corner. no riding for me. 🙁

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