deputydog95

Im sure someone here knows a little something about this...

I've seen a lot of cars at the track with the business logos, web addresses, etc...

I'm assuming aside from advertising, they are writing at least some portion of this off.

Any idea what the legalities of this are? Is it a percentage?

TRAKCAR

utkinpol

http://www.ehow.com/info_7879552_aut...eductions.html

deputydog95

Great article. Looks like to me like if you did it right, from an advertising perspective anyway, you could probably safely at least write off some of it.

By business is medical related. With the large volume of physicians that participate in this stuff, I think it would be argued that this is good advertising for my company.

I wouldn't write all of it because there is a hobby aspect to this of course. I think if one wasn't greedy about it, you should be fine.

utkinpol

i used to run side business and had once to fight off IRS, so, it is all kinda possible but you need to factor in possible cost of a lawyer to represent you at an audit to see if overall sum of savings from additional deductions will prevail.
plus, again, note it is all about racing with a monetary gain as a factor. DEs will not count here at all.
Club racing also may hardly count in as it has no prize money. So unless you run your car in a series and have a real racing rig i am not sure if a street legal GT3 car will comply well at an audit time.
But, who knows. If you get a smart attorney you may settle pretty much anything.

mdrums

Dog, besides the doctors at the track we all have older mom's, dad's or relatives that need the type of care your company provides. So you can feel like you are advertising to everyone at the track and to and from the track.

Can't wait to see the pretty light blue and pink flower Granny Nanny graphics on the trailer and car!

deputydog95

I'm going to talk with my accountant on this. I think it's doable under the advertising guise. I wouldn't write off all if it like I'm Patron Racing or something, but I bet you could do a percentage safely.

NorthVan

Although I don't write off too much of my time at the track, I have met a few people there that has resulted in business I would never have had if I didn't go to the track.

Veloce Raptor

I would be VERY VERY reluctant to atttempt to write off any De or club racing related costs, regardless of whether you promote your own business. Guaranteed audit IMO.

tcsracing1

My RS is a company car for my auto leasing company.

I use my RS as not only a tool for promoting my auto business but also to promote my other companies.

My other businesses pay for the advertising space on the car and I declare it as business income.
I have been fortunate to have other major companies pay to be listed on the car during competition events.

All the money collected is used for the cost of racing/events. Not a lot, but it helps.

After tax dollars on a track time car is an expensive habit.... hence race cars are run like a business.

Bare in mind your RS becomes a moving billboard.

With sometimes national TV/publication coverage i like to think it is advertising at its finest for most any event.

D.E is a stretch however

Hoosier_Daddy

If Andrew can prove more income related directly to the advertizing activity (making more than he spends on the activity and therefore pays more income tax after a reasonable look back, i.e. 3 to 4 years) I believe he'll have a case. However, good luck with the fight if your expenses exceed provable income that is related directly to the activity. And if he actually drives vs. just placing his name on the vehicle it'll just elicit more scrutiny.

I know a car leasing business and track oriented repair related business who legitimately claim expenses, but given what Andrew has mentioned about his business I would, as NorthVan mentioned, retain a tax attorney now and start putting away a legal fund. (In fact, Andrew himself even used the term "guise" in describing his intentions)

I have owned my own business and have been advised by each accountant I have ever had that I would be playing with fire. As with most decisions related to business deductions with regard to a schedule C or a Sub-chapter S, it always comes down to risk vs. reward.

Good luck either way.

LVDell

I spoke at length about this with my accountant. Not that I was going to slap our practice logos and stickers all over the car and try to write it off.....but I had the same question. If others have stickers on their car advertising their company, are they writing it off?

He basically said that it is VERY risky to do and YOU would have to prove that you were able to bring in business directly attributable from somebody seeing that advertising at the track. Then, you'd have to determine what percentage (more than likely miniscule, if any) of your income is attributable to that.

Bottom line is that it depends. There is NO WAY we would get new patients at our practice from somebody seeing the practice logo on the car 1.5 hours at VIR.

mdrums

Dell, has a great point....Dog, will you gain business in Sarasota by advertising at Sebring 2hrs away? I don't think so and that would be hard to prove.

tlarocque

Unless your business is tied very closely to racing, you are raising a very large red flag for an audit. I asked my accountant about this a couple years ago too (I'm an Ob/Gyn, that would be a stretch!). Writing off DE expense... good luck.

tlarocque

This: "As with most decisions related to business deductions with regard to a schedule C or a Sub-chapter S, it always comes down to risk vs. reward."

In this case, Risk >>> Reward for almost all of us.