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

[teamgreen]

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.....

Yes, typically, every 3 years you need to show a "Profit" or a "Break-Even" year; but, if the Racing IS the Business and you have legit Revenue and Expenses...you can go to bat with the IRS as a "Business".

When you co-mingle your racing into your day-to-day Business...and your Primary Business ISN'T Motorsports or Motorsports based...yup...It's REALLY EASY to get the IRS all up in your Grill.

Me? My BUSINESS is a Motorsports Business (Has a good presence in Motorsports as a Supplier to OEM's and the after-market: I "Write-Off"/Expense MANY things LEGITIMATELY that people often say you "Can't")

For instance...Pete...remember the lil' Fund-Raiser at Mikes? Yup, that was expensed. Legitimately...Product Development and Testing (Customers: FMF-testing and Development of New Prod's for an OEM; also, Charitable Contribtuions...)

Do your homework.
Keep good records.
Follow the guidelines.

Go do it!

[SPONSOR]

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