Starting a race team , what are you guys doing for sponsors and tax purposes?

[BANNED4LIFE]

talk to alan phlueger.....he had it figured out.....for a while.....

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[trailready]

talk to alan phlueger.....he had it figured out.....for a while.....

LOL! funnay

[goofballracer]

talk to alan phlueger.....he had it figured out.....for a while.....

Burn!!!!! Haha

[BANNED4LIFE]

talk to alan phlueger.....he had it figured out.....for a while.....

im just kidding alan.....im sure all your expences were legit.....im sure it was just a misunderstanding.......but why plead guilty if you did nothing wrong????????????????

[Josh_Westwood]

I ran my racing as a "Hobby" with the sponsorship as "Hobby Income" and racing as the "Hobby Expense". I did it exactly like I was supposed to but that didn't stop the IRS from auditing my for two seperate tax years. It took me years to end the audits. The held my Tax returns until it was settled. Each year was handled completely different from each other.

The Tax Court Judge settled my 1st audit in my favor. The Last IRS Lady that I dealt with told me that I did everything correct but someone who didn't understand the situtation started the audit.

The 2nd audit the IRS failed to provide me all my chances to fight the audit along with my right to go to Tax Court. Instead they closed it in their favor and gave it to their Collections Dept. From there I had to fight to reopen my case and when they did, they quickly dropped the audit in my favor. After the 2nd audit they told me that I would have a tag in my file explaining my "Hobby" and I would not be audited again. I stopped racing with my sponsor so I don't know if they would or would not audit me again.

I did it as a "Hobby" which both times the IRS said was correct but that didn't stop them from auditing me and costing me a bunch of time and money.

[dan200]

Not that it matters in this discussion but, its called a WRITE OFF, not a right off...

This is something i thought you might want to know in case you are "righting" right off in your messages to your contacts regarding this issue.

[ScottyA]

Start a biz prepping race cars for other people then just throw your crap in there. Wala. Better make some money after the second year or close the shop.

[gotteracing]

i wrote off my toy hauler as a mobile office when i owned west coast copiers. i have a few sub contractor construction friends that wrote off race trailers and toy haulers as a mobile office. or most of the cost of the toy hauler depending on situation.

[teamgreen]

"ACME Motorosports" as a Business: The Business of Promotoing it's Sponsors...Ya do your usual P&L every year...DONE!

Seems to works for Rick Hendrick, Robby Gordon, Chip Ganassi, Jimmy Vasser, PAB...etc.

[BANNED4LIFE]

"ACME Motorosports" as a Business: The Business of Promotoing it's Sponsors...Ya do your usual P&L every year...DONE!

Seems to works for Rick Hendrick, Robby Gordon, Chip Ganassi, Jimmy Vasser, PAB...etc.

claiming EXPENCES to offset the income you recieve from WINNING, sponsors, and ect. is NEVER the problem.......its the CLAIMING HUGE LOSSES to offset your regular income to avoid paying taxes (because its really just your HOBBY) is where the problem comes into play.......and YES, you can EXPENCE anything you want at any time, but when the IRS/THE MAN audits you years later, and finds all this bogus hobby expences, the penalties and interest will KILL you.....happens a lot.....and your accountant will tell you the same....he is not the one that will be in a bind 3 years from now, YOU WILL.....