From: Ryan Gill (rmgill@mindspring.com)
Date: Wed Dec 14 2005 - 18:01:53 PST
At 4:22 PM -0600 12/14/05, Michael Howell wrote:
>>
>If you have never won a prize, never took
>anything with you and sold it, and never took a
>free cup of coffee for being in the show then
>you are in good shape. Just be sure to stick to
>the story if you get stopped.
Not according to the Feds. State DOT may think
different, but the Feds say that standard prize
money if reported as normal income is NOT a
business proceed.
§390.3 General applicability.
(f) Exceptions. Unless otherwise specifically
provided, the rules in this subchapter do not
apply to -
(3) The occasional transportation of personal
property by individuals not for compensation nor
in the furtherance of a commercial enterprise;
Their Guidance expands on this. (D. Harris quoted this in his letter to me)
http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/interp390.3.htm
Question 21: Does the exemption in §390.3(f)(3)
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 CMVs 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 the
underlying activities is not deducted as a
business expense for tax purposes; and, where
relevant; (2) corporate sponsorship is not
involved. Drivers must confer with their State of
licensure to determine the licensing provisions
to which they are subject.
Thus, you can go to Churchville, win $500 for
Best Artillery Tractor drive home and not have to
fret about being illegal where the Feds are
concerned. It's normal income. It's not related
to a business. Bjorn on the other hand hauls
things around with his truck for a business.
That's why he got DOT numbers for his truck. Now,
Art might have a problem if he's picking up and
dropping off parts for his business.
--
--
Ryan Gill rmgill@SPAMmindspring.com
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I speak not for CNN, nor they for me.
But I do work there and still like the company.
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'60 Daimler Ferret '42 Daimler Dingo '42 Humber MkIV (1/2)
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