[Seahawk]

I am not sure of the parallels (tax-wise) to classic cars, but I am unfortunately involved in the horse business, well, my wife and daughter are and I do all the taxes.

In the US, register your business. Use one of the four ways available to obtain an employer identification number from the Internal Revenue Service to register your antique car business on the federal level. Obtain a business license from the city or county where your business will be located, and find what out tax laws apply to your business by contacting the department of revenue at both the local and state level.

You must abide by the often strict rules governing the conduct of your business, record keeping, etc.

For us, we used to buy and sell horses and ponies, give lessons, etc.: My wife and daughter would find them, get them trained and sell, generally for profit.

Tax-wise, I was able to write off all applicable expenses associated with all of this goodness, including the stable, equipment, feed, travel to look at horses, repairs to equipment, parts, etc. (even miles to drive and get those parts). Depending on the depreciation schedule, assigned value, etc., the business never "made" money and we where able to deduct our business loses off our household income.

Same with the farm business we have.

That is a 30,000 foot overview of how it works here.

The absolute key is understanding all tax laws to the molecular level, keep spotless records (for instance, any vehicle associated with either business has a wheel book in the center console: On business, we write down the time, miles and purpose for every trip, including interim stops. It is a habit that has paid off.), receipts and log your time.

That's about it. We also protect our personal assets, which are separate from the businesses.