small business/ tax write offs

mxmat813
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mxmat813
Edited Date/Time 2/11/2016 4:42am
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying to figure out a way to regain some of my losses. I have a good friend who works for Western Power Sports and I'm thinking of starting a small business out of my garage selling merchandise for motocross, atv's, sleds, street bikes and what not. I don't want to invest much time or money into this as I'm just trying to use it to deduct some of my racing expenses, so I'm thinking of having 0 overhead. Just telling friends, having them tell their friends and what not. Pretty much just sell stuff by word of mouth. I'll sell stuff at 20% off WPS retail price. That way I can cover sales tax and what little time I do have invested. I'm no accountant and don't know how tax laws work exactly, but I was hoping I could then write off my racing as advertising for my business.

Anyway, that's the plan I hashed out in my head last night. Just looking for opinions, both good and bad, and advice from anyone who has a small business and knows a little about the way write offs work. Thanks guys!!
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SteveS
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SteveS 11/12/2009 11:25am
11/12/2009 11:25am
Your business will have to meet certain criteria to be classified as a business and not a hobby. You should talk to your accountant about it.

If it's a legitimate business then you can expense advertising as such and it comes off your gross.
UpTiTe
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UpTiTe 11/12/2009 12:27pm
11/12/2009 12:27pm
If youre earnings from mx is being taxed, then anything that has to do with that income is a write off, because technicly, youre a professional.
Eveything you spend on racing can be writen off.

Its a shaded area, but its leagle.
mxmat813
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mxmat813 11/12/2009 2:28pm
11/12/2009 2:28pm
Thanks for the responses guys. I think I'll talk to an accountant and see what the best way to go about things will be.
noob
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noob 11/12/2009 3:17pm
11/12/2009 3:17pm
UpTiTe wrote:
If youre earnings from mx is being taxed, then anything that has to do with that income is a write off, because technicly, youre a professional...
If youre earnings from mx is being taxed, then anything that has to do with that income is a write off, because technicly, youre a professional.
Eveything you spend on racing can be writen off.

Its a shaded area, but its leagle.
True (and I dig the creative spelling). If you make a living racing, your racing expenses should be considered tax write-offs.

But it all depends on the ratio of income to expense. Talk to your accountant.

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Tiki
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Tiki 11/12/2009 3:17pm
11/12/2009 3:17pm
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.
newmann
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newmann 11/12/2009 3:23pm
11/12/2009 3:23pm
Bought me a big ass write off this year! 44ft long on wheels.Ten wheels to be exact!
noob
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noob 11/12/2009 3:33pm
11/12/2009 3:33pm
newmann wrote:
Bought me a big ass write off this year! 44ft long on wheels.Ten wheels to be exact!
I don't know you from Adam... but it was a sad day when I realized I could park my whole house inside your garage.
racin mason
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racin mason 11/12/2009 4:27pm
11/12/2009 4:27pm
If you write any thing off you have to have the reciept,and keep it for 7 years.If you get audited and lets say you pay cash for your fuel and keep a log on fuel expenses, you will be denied the deduction with out a reciept,I never raced professionaly,but I always had my bussiness name on my bikes.I keep all my reciepts and deduct them as advertising.You would be surprized how many people want an old moto head to build them a fireplace.Thankfully there is no law against lousy advertising!!!!!
Rupert X
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Rupert X 11/12/2009 4:29pm
11/12/2009 4:29pm
Tiki wrote:
Kramer: It's a write-off for them. Jerry: How is it a write-off? Kramer: They just write it off. Jerry: Write it off what? Kramer: Jerry all...
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.


Yeah boy.


.
DirtDgr
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DirtDgr 11/12/2009 4:51pm
11/12/2009 4:51pm
racin mason wrote:
If you write any thing off you have to have the reciept,and keep it for 7 years.If you get audited and lets say you pay cash...
If you write any thing off you have to have the reciept,and keep it for 7 years.If you get audited and lets say you pay cash for your fuel and keep a log on fuel expenses, you will be denied the deduction with out a reciept,I never raced professionaly,but I always had my bussiness name on my bikes.I keep all my reciepts and deduct them as advertising.You would be surprized how many people want an old moto head to build them a fireplace.Thankfully there is no law against lousy advertising!!!!!
Exactly. You are guilty until you prove your self innocent!
SPYGUY
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SPYGUY 11/12/2009 8:05pm
11/12/2009 8:05pm
mxmat813 wrote:
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying...
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying to figure out a way to regain some of my losses. I have a good friend who works for Western Power Sports and I'm thinking of starting a small business out of my garage selling merchandise for motocross, atv's, sleds, street bikes and what not. I don't want to invest much time or money into this as I'm just trying to use it to deduct some of my racing expenses, so I'm thinking of having 0 overhead. Just telling friends, having them tell their friends and what not. Pretty much just sell stuff by word of mouth. I'll sell stuff at 20% off WPS retail price. That way I can cover sales tax and what little time I do have invested. I'm no accountant and don't know how tax laws work exactly, but I was hoping I could then write off my racing as advertising for my business.

Anyway, that's the plan I hashed out in my head last night. Just looking for opinions, both good and bad, and advice from anyone who has a small business and knows a little about the way write offs work. Thanks guys!!
Do you think the IRS is just plain stupid?
Scotty
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Scotty 11/12/2009 8:06pm
11/12/2009 8:06pm
mxmat813 wrote:
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying...
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying to figure out a way to regain some of my losses. I have a good friend who works for Western Power Sports and I'm thinking of starting a small business out of my garage selling merchandise for motocross, atv's, sleds, street bikes and what not. I don't want to invest much time or money into this as I'm just trying to use it to deduct some of my racing expenses, so I'm thinking of having 0 overhead. Just telling friends, having them tell their friends and what not. Pretty much just sell stuff by word of mouth. I'll sell stuff at 20% off WPS retail price. That way I can cover sales tax and what little time I do have invested. I'm no accountant and don't know how tax laws work exactly, but I was hoping I could then write off my racing as advertising for my business.

Anyway, that's the plan I hashed out in my head last night. Just looking for opinions, both good and bad, and advice from anyone who has a small business and knows a little about the way write offs work. Thanks guys!!
SPYGUY wrote:
Do you think the IRS is just plain stupid?
Yes! Actually they are!
super rat
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super rat 11/12/2009 8:18pm
11/12/2009 8:18pm
mxmat813 wrote:
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying...
Hey guys, just looking for some ideas and input. Seeing as how the government taxes me on contingency money that is made through racing, I'm trying to figure out a way to regain some of my losses. I have a good friend who works for Western Power Sports and I'm thinking of starting a small business out of my garage selling merchandise for motocross, atv's, sleds, street bikes and what not. I don't want to invest much time or money into this as I'm just trying to use it to deduct some of my racing expenses, so I'm thinking of having 0 overhead. Just telling friends, having them tell their friends and what not. Pretty much just sell stuff by word of mouth. I'll sell stuff at 20% off WPS retail price. That way I can cover sales tax and what little time I do have invested. I'm no accountant and don't know how tax laws work exactly, but I was hoping I could then write off my racing as advertising for my business.

Anyway, that's the plan I hashed out in my head last night. Just looking for opinions, both good and bad, and advice from anyone who has a small business and knows a little about the way write offs work. Thanks guys!!
SPYGUY wrote:
Do you think the IRS is just plain stupid?
Scotty wrote:
Yes! Actually they are!
Government workers at their best.

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