Track Bike for Business Write Off?

[CBRtist]

My CBR recently went boom I'd like to paint it/decal it to reflect my business(es). How many others have done this? Hmm I wonder if it's two businesses if it's a double write off

Who does everyone use/recommend for body/paint/decaling? Got a recommend but feeling this out. This is NOT a fancy job. Straight solid color, decals/numbers. I'm in Delaware if that matters, but shouldn't because I have someone who is doing mechanical work and can put on body.

Thx!

 

[D-Zum]

Speedwerks in DE should be able to take care of you nicely.

As for writing this sport/hobby off, I'd consult with a CPA to make sure things you do don't bite you later if you get audited.

 

[CBRtist]

Lol... not writing off the hobby! Though it would be great to write off Track Days!!! Just the painting is deductible - got a CPA

I know Speedwerks. Just exploring other options.

 

[ToddG]

How about our boy Emerson??

 

[sti2.5ldohc]

I'd like to know this as well. Also a small business owner in Delaware.

 

[CBRtist]

Emerson no longer paints. He is too busy cooking bacon and hot wiring pit bikes

 

[HondaGalToo]

I like my guy - jzracecolor.com - he's outside of Allentown, PA.

 

[peoples1234]

The cost of putting the business name on the bike for advertising...probably okay if you can make the argument that it was both ordinary and necessary for your business. In reality, you are not using the bike in shows or competition so the value is not the same as a traditional sponsor, so the argument would likely not fly. Plus you have a personal gain problem as well.

I'd pass on the business paying the cost of the whole paint job, but it could pay for stickers with the business name on it or an allocable portion you could justify for business rather than personal.

 

[CBRtist]

@peoples1234 - Are you a CPA or otherwise? I'm curious to know so I can factor in your input before talking to mine (because they love to be bugged with this stuff this time of year ).

This is not a sponsorship, this is a promotional vehicle for my business. There are many people in attendance at a track event and this is no different than advertising on your car and commuting to and from work. It this it's about exposure, not necessarily how applicable it is to the event itself.

Let me add the business I'm promoting is we teach kids Spanish. Painting my bike like a Spanish flag and decaling it is 100% promotion for my business. I don't just go into area schools, but I write and illustrate bilingual books which accompany lesson plans that I will be retailing this year locally and nationwide. As for personal gain... not really, and I think can justify it for business... the demographic is there at the track... moms, dads, kids, a bunch of people who *might* go back to the school their kids go to and mention me or my company. There is also a significant Hispanic demographic at the track, which is also applicable to my business.

Judy... I'll check it out!

 

[peoples1234]

The problem with your comparison is that putting a business name or advertising on a car does not make it a 100% deductible business vehicle by default. Just because you ride to the grocery store with your business name on the vehicle, doesn't make those miles or expenses a legitimate business expense. Just like the people who pull their bikes to the track with their work trucks/cars shouldn't pay for the gas as a business expense (or count that toward their business use percentage). I am sure plenty of people do.

It really comes down to intent, and your intention at the track is to ride and personal enjoyment not advertising. Motorcycles don't have anything to do with your business and the motorcycle isn't a business asset (hopefully). I am not a CPA, but I have a Master's in Accounting an own an accounting firm that specializes in small businesses and payroll. If you were my client I would advise you against taking this expense as a business expense.

That being said, I doubt you would ever get "caught".

 

[Mikey75702]

The problem with your comparison is that putting a business name or advertising on a car does not make it a 100% deductible business vehicle by default. Just because you ride to the grocery store with your business name on the vehicle, doesn't make those miles or expenses a legitimate business expense. Just like the people who pull their bikes to the track with their work trucks/cars shouldn't pay for the gas as a business expense (or count that toward their business use percentage). I am sure plenty of people do.

It really comes down to intent, and your intention at the track is to ride and personal enjoyment not advertising. Motorcycles don't have anything to do with your business and the motorcycle isn't a business asset (hopefully). I am not a CPA, but I have a Master's in Accounting an own an accounting firm that specializes in small businesses and payroll. If you were my client I would advise you against taking this expense as a business expense.

That being said, I doubt you would ever get "caught".

I don't think she is planning on using the vehicle like a company car, and writing off all of the expenses that come with it.... Though it would be cool to do if Uncle Sam wouldn't bend you over for it. I think she is comparing this to the companies that will paint their personal cars for "advertising" purposes, but all other expenses will be the vehicle owners. I don't see how this is any different. Not having any kind of accounting back ground, I wouldn't be surprised to see this get lumped into the "sponsorship" category for the IRS though.

 

[peoples1234]

I don't think she is planning on using the vehicle like a company car, and writing off all of the expenses that come with it.... Though it would be cool to do if Uncle Sam wouldn't bend you over for it. I think she is comparing this to the companies that will paint their personal cars for "advertising" purposes, but all other expenses will be the vehicle owners. I don't see how this is any different. Not having any kind of accounting back ground, I wouldn't be surprised to see this get lumped into the "sponsorship" category for the IRS though.

From the horses mouth: "You generally can deduct reasonable advertising expenses that are directly related to your business activities." (Pub 535, Ch. 11)

You got a few things going on here that apply to this situation: the word "reasonable" and "directly related".

 

[Evil Cupcake]

If you are near the Northern VA area my neighbor has his own shop and did my paint below. pm me for info and prices

-http://forum.n2td.org/index.php?threads/new-paint.35508/

 

[CBRtist]

I think she is comparing this to the companies that will paint their personal cars for "advertising" purposes, but all other expenses will be the vehicle owners.

^ yes but...

From the horses mouth: "You generally can deduct reasonable advertising expenses that are directly related to your business activities." (Pub 535, Ch. 11)

You got a few things going on here that apply to this situation: the word "reasonable" and "directly related".

Maybe it's the track crack that's distorting my perspective but I'm seeing directly related with teaching Spanish... family/hispanic demographic... Spanish flag... Spanish... Moto GP.... Spanish... Marquez, Lorenzo, Pedrosa... Spanish

Ok maybe the last part a stretch. Seems "intent" "reasonable" and "directly related" is pretty subjective and unclear. Wonder how final determinations are made in this regard. Guess I'll follow up on this after the 30th.

That being said, I doubt you would ever get "caught".

Until they see this thread. Get out the shredder.

 

[CleverRiver6]

The only thing you need to be wary off is that your "business" is turning a profit/generating income at some point. The IRS can't fault you for just being a horrible business man and "losing money" all the time. Just buy a bike in the winter, and re-sell in the spring like a vstar600 or anything really. Make a few hundred on the higher side, but its income either way. Save all your receipts for up to, I think, 7 years.

- mileage to/from the track
- track days can be considered "business related educational expenses"
- Meals/supplies/track fuel all can be deducted

Turbo tax will raise flags on a home office deductions before a schedule C

 

[Bubba Zanetti]

I like my guy - jzracecolor.com - he's outside of Allentown, PA.

I second JZ. He is a good friend and does a great job Wendy.

BZ