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I am thinking, within the next few years, of starting a motorsports (most likely ClubRally) team not only for fun, but structuring it as a business venture as to save money (through taxes, possible small business loans, etc.). Since there are contingencies and prize monies awarded for most kinds of motorsports, would this not qualify as a viable small business (since profit is the aim)? I am looking into what kind of tax breaks one can manage from this type of operation. What kinds of things can you write off, car purchase, event fees, licensing and registration of the car? And how long can your company be unprofitable until the IRS raises it's eyebrows to your operation? And how would that coinside with the taxes I pay for my day job?
I know some teams rely on tax breaks to minimize the sheer monetary impact of fielding a car in events.....so how do you guys do it? For example, I have seen Gary Sheehan's car, and the 'marketing through motorsports' angle that he takes.
I am not trying to be shady about this at all, just looking for some real world options to try and save money should I decide to get into the next level of racing, and I don't feel bad at all about using the IRS and their confounding tax laws to my advantage. Thanks for any help/experience you guys can offer me, I appreciate it.
Thanks,
Eli
:7
I know some teams rely on tax breaks to minimize the sheer monetary impact of fielding a car in events.....so how do you guys do it? For example, I have seen Gary Sheehan's car, and the 'marketing through motorsports' angle that he takes.
I am not trying to be shady about this at all, just looking for some real world options to try and save money should I decide to get into the next level of racing, and I don't feel bad at all about using the IRS and their confounding tax laws to my advantage. Thanks for any help/experience you guys can offer me, I appreciate it.
Thanks,
Eli
:7