I had a thought!

Papakeith

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• Dec 23, 2001

• #1

Amazing ain't it!:silly:

How feasable would it be to create a "race team" for my website. And call the expenses incured advertising expenses? How much if any of it could be written off? The bikes would have to have graphics for the site, and the truck too.
Any thoughts?

 

VintageDirt

Baked Spud

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• Dec 23, 2001

• #2

Sounds like a good idea. But, I think (meaning I'm no accountant) you have to have the intention (and some actual possibility must exist) to make a profit. Otherwise the IRS is gonna catch up with you one day, and they'll be charging all kinds of interest and penalties.

When I was a kid, me and some buddies of mine started an ill fated construction company. We should have called H&R construction (Hit & Run). Anyway, we made a mistake on our taxes, and even though we didn't owe the IRS any money. Five years later, after C.R.E.W. Construction (Chet Red Ed Wes) was long gone, we got called downtown for a meeting. We ended up paying $500 in penalties and interest. That was a lot in 1979! I guess the C.R.E.W. Construction story doesn't really apply to what you are planning, but it's a good story. We learned a lot about what NOT to do.

 

Last edited: Dec 23, 2001

RM_guy

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• Dec 23, 2001

• #3

If I recall correctly, you can only lose money (not make any profit) for three years before the IRS considers it a hobby and you no longer get any tax incentives. Check with your accountant. It may be more hassle than it’s worth with all of the fees involved with getting a business started in the first place.

I would imagine that was why so many internet businesses closed shop, they had more money going out than coming in.

 

VintageDirt

Baked Spud

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• Dec 23, 2001

• #4

But wait! I didn't realize you already had a business and you just want to "sposor" a race team. Now that might work.

 

Jaybird

Apprentice Goon

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• Dec 23, 2001

• #5

LOL....I hope there are no dirt bike riding, IRS auditors amoungst us!
:debil:

 

singletracker500

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• Dec 23, 2001

• #6

A couple of years ago I asked my accountant if I could deduct my bike as an advertising expense. I have met people in the desert who I've ended up painting for. He said, "you could, but it would raise a red flag" I decided against it. :scream:

 

BSWIFT

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• Dec 23, 2001

• #7

Originally posted by Jaybird
LOL....I hope there are no dirt bike riding, IRS auditors amoungst us!
:debil:

Click to expand...

No, they would be found at WWW. Stoolpigions.gov/bureaucrats/.

 

dkb

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• Dec 24, 2001

• #8

Happy Christmas Eve everyone! I have a friend at work that races go-carts. He saves his receipts and is able to write some of it off as a hobby. I have never looked into it personally.

 

WoodsRider

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• Dec 26, 2001

• #9

Originally posted by Papakeith
How feasable would it be to create a "race team" for my website. And call the expenses incured advertising expenses? Any thoughts?

Click to expand...

Well Keith, first thing you'd have to do is actually race. :p

 

Papakeith

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• Dec 26, 2001

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• #10

first thing you'd have to do is actually race.

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I got that covered. I raced a hare scramble a couple of weeks ago, and I've got the broken ribs to prove it!:eek:
What I have to figure out is how to finish one of the events.:confused:

I would think I'd have to open up some kind of store on my site.That would allow me to show a revenue stream (no matter how small). Other than that, I figure I'll need to bend the ear of one of my accountant friends.

Has anyone else tried this or anything remotely resembling it?

 

WoodsRider

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• Dec 26, 2001

• #11

Originally posted by Papakeith
I got that covered. I raced a hare scramble a couple of weeks ago, and I've got the broken ribs to prove it!:eek:
What I have to figure out is how to finish one of the events.:confused:

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Learning how to finish should be your first priority. If you trying to "write off" the cost of racing on your taxes, good luck. My only advice to you is "if you want to play, you've got to pay!" If you do find a way to race for free, you might want to give Roger Penske a call.

 

Papakeith

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• Dec 26, 2001

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• #12

It was my first "real"(read non- Dirtweek) race. Cut me a little slack. I took a fall the day before the race, and landed on the same spot on my first lap. I still managed to finish two more loops. I just didn't go out for the second moto. I know, running the second moto should have been a higher priority than breathing. Sorry I didn't podium. shezzzsh! Don't be such a :uh:

The chances of me actually creating a team are slim, but I'm just throwing out ideas. I didn't want this to become a what a stupid idea thread. I realize that it is (more likely than not) a pipe-dream. I just figured with a little creativity, and brain storming, we might be able to come up with a few marginally viable options. That, and I find it fun to ponder the "what if's".

'scuse me, gonna go work on putting my priorities in order now.:silly:

 

WoodsRider

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• Dec 26, 2001

• #13

The key to finishing is trying to remember that it's not a race and that your just out having fun. Every time I get serious, I end up making a stupid mistake and usually don't have any fun. :eek:

I assume it was one of the Pilgrim Sands club winter hare scrambles events you rode, with a two-moto format?

As far as stupid ideas go, there are worse... much worse. ;)

 

Papakeith

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• Dec 26, 2001

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• #14

Every time I get serious, I end up making a stupid mistake and usually don't have any fun. :eek:

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Yeah, mine was third gear in snow with no studs.:ugg:
Yours was Zip-Ties nuff said!!:p

I assume it was one of the Pilgrim Sands club winter hare scrambles events you rode, with a two-moto format?

Click to expand...

Yup, that's the one.

 

WoodsRider

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• Dec 26, 2001

• #15

Originally posted by Papakeith
Yours was Zip-Ties nuff said!!:p

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Nope, it was more like when I smoked the clutch on a hill 11 miles into the '99 Little Muddy Enduro. Or when I smacked several trees and blew out my ACL 3 miles into the '99 Blackhawk Enduro. Or smacking a tree breaking four toes and separating my shoulder 3 miles from the end of the '00 BaRF Enduro. Or when I smoked my clutch on a hill (again) 1.5 miles into the '00 Big Red Enduro.

Let's see, that four toes, two clutches, one shoulder and one ACL. Naw, racing isn't expensive. :scream:

BTW - It was dirtybkr that couldn't figure out how to operate a zip-tie. ;)