say a guy build custom buggies in his spare time just for fun then sells them for what the parts cost, no charge for labor...would the tools, materials or any loss be tax deductable or would you have to set up a offical company and have some kind of income to write the stuff off aganist??? and if so how hard would it be to set that up if any body knows??? always good info on here........
"non-profit company"? 
Read up on the "hobby loss" rules.
SEADave said: Read up on the "hobby loss" rules
thanks Dave, that is exactly what i needed.
Another angle on this since you set it up as a pretty casual thing. Someone goes out on one and there is an injury. As it stands now you just say "aw shucks, I'm just a good ole boy who sold my toy on Craigslist." An enterprising young lawyer could bring up that if you were making a tax claim related to your building then you are a business with a product liability implication. It's a reach but just think about it.
glueguy said: It's a reach but just think about it.
its a valid point, thanks
The points that have been brought up are exactly why our Lemons team is setup as an LLC. We all are customers of the company, especially the arrive and drives. Not only is there a small tax benefit to the 4 owners that we have, but we get a bit of extra liability protection in addition to the waivers we have everyone sign.
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