Okay, maybe this is a silly question, or just plain stretching it too far, but here it goes.

If a person was to start a race team, with the intent to make a profit through advertisers, could the cost of equipment and any rental expenses be tax deductable?

Carrying it a bit further, if a quad such as a Raptor was leased for a month with the intent to be used as the race team vehicle and not used for recreational use, would the cost of this lease be tax deductable just like any other lease that is used for a business?

Also, if after a couple months, the race business seemed to be losing money instead of making it, could it be shown as a loss?

Maybe I need to go to a tax forum, but I was wondering if anyone else has ever had a similar idea.

 

I believe the answer to your question is ............yes, with the right accountant. I would consult a "good" CPA before attempting this.

 

I think you can depreciate your equipment and deduct your expenses--AGAINST YOUR WINNINGS!

Hey, don't listen to me or anyone else, except a good tax adviser. Toll-free advice is available from the IRS; also free "Small Business Tax Guides" are available.

Good luck.

Tree Farmer

 

sounds like someone wants a free quad, just work for it lazy ***! jk =p

 

HaHa that was harse

 

If you don't pay the sales tax on it, you cannot get your state sticker, therefore, you cannot ride on any state or federal owned ORV areas.

PS- pay your taxes, millions on welfare are depending on you.

 

Thanks for the feedback.
Oh, by the way... don't think I'm trying to get something for nothing. I'm 27 yrs old and have been paying taxes for 15 years so that some of our less industrious, I mean less fortunate citizens could have something for nothing.

 

Free Quad!? I doubt it. That would be tax credit. Good luck getting that.

A tax deduction only reduces your taxable income

 

PS- pay your taxes, millions on welfare are depending on you.

I think TheQuadFather was just adding some humor. Kinda like.. Lottery is a tax on people who are bad at math.

 

...and also suppose said owner of proposed "race team" were to be indicted on federal charges of tax fraud. further, consider your new cell mate to be very large, very lonely, and very persistent. upon consideration of these variables, i think i would just go out and steal one. those guys always seem to get off...

good luck.