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School me on your LLC...

Discussion in 'General' started by IL8APEX, Nov 20, 2023.

  1. IL8APEX

    IL8APEX Well-Known Member

    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?

  2. Phl218

    Phl218 .

    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."
  3. Boman Forklift

    Boman Forklift Well-Known Member

    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.
  4. Razr

    Razr Well-Known Member

    If you take any of it as a write-off, you better show some income from it.
    Phl218 likes this.
  5. ChemGuy

    ChemGuy Harden The F%@# Up!

    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.
    Phl218 likes this.
  6. mike w

    mike w Knarf's buddy

    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
  7. IL8APEX

    IL8APEX Well-Known Member

    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.

  8. Dave675

    Dave675 Well-Known Member

    Get that Kramer ready for endurance :Poke: You can have some cash come in from racing like posted above.
  9. IL8APEX

    IL8APEX Well-Known Member

    I'll have to spend all the cash hiring a fast guy to ride it!

  10. Dave675

    Dave675 Well-Known Member

    Thats what the marketing budget is for :)
  11. Razr

    Razr Well-Known Member

    There his no problem losing more than you make.
    Phl218 and IL8APEX like this.

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