Mike Bultemeier wrote:
>
> That according to my accountant is not a wise idea. Pay yourself a salary
> pay the taxes and spend the money on AutoX or whatever you want. You will
> have a hard time trying to convience the IRS that this is a form of
>advertising
> and is somehow business related.
Yes. However, there may be some direct business connection to
autocrossing, in which case the deduction is legit. The sponsoring
business must be prepared to prove the business (profit potential)
relationship. I agree with paranoid Mike that it is not smart to just
have your business sponsor autocrossing and hope to survive an audit.
If your business is involved in motorsports *and/or* can benefit from
the exposure to fellow autocrossers, and you can show a reasonable
expection of a profit (and be able to show a profit in 2 out of 5
years)..then the deduction is a good one.
Randy Chase (who takes clients to autocrosses) 8-)
'91 MR2 CS (written off/depreciated for business)
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