How do you guys maximize your racing dollars? Context: Years ago I used to be self-employed, and I miss having (the tax write-offs associated with) my own business. My business used to pay a marketing stipend to support (some of) my track time. I am now looking at 2024 and what changes I will make. Got some suggestions? -Tom
my tax guy said there is no way making A pay for B. however, if you have a racing related product or service you can bring to the track that would qualify, it'd be a bit less sketchy than plain "marketing expenses."
I haven’t been roadracing in quite a few years, but if cash prizes are coming back, I think you can use that as a valid reason to write off some stuff. Also, if you do any work on other peoples bikes, that you can charge for, that would be a “business”. Probably much easier to do in drag racing where you are always running for a purse.
What Razr said...do a quick search for hobby vs business....doing something like this can open you to audits...so make sure all your tees are dotted and I's are crossed.
In Kanuckistan but my accountant had me set up as a "consultant" for the business to my fab work and racing for around 30 years
Nothing shady here. Like I said I've been self-employed before. Also my accountant is a good friend, so he's straight with me about what draws attention. I'm looking at two businesses: Business 1 is professional consulting. I'm an Industrial Designer with 25 years of experience, the last 10 years at the cutting edge of a highly specialized field. Business 2 is specialty fabrication, including motorcycle parts. No question here that there is a direct association to the racing. There will be some income, but honestly I don't expect it be enough to pay for the tire budget. I expect to have enough income from Business 1 to be able to have a marketing budget and throw a small amount of money at Business 2. I just want to make sure I am maximizing every dollar that Business 1 gives Business 2. -Tom
