June 13th, 2012, 12:17
Re: Starting a race team , what are you guys doing for sponsors and tax purposes?
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".
Originally Posted by BANNED4LIFE
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!
About OX: I can only pray that you get to meet a person that can make you want to rail The Baja WFO the way Jeff made me want to...EVERY time I hit that starter button.
June 13th, 2012 12:17
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