turbo ken
Nitro Member
Nitromater
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Is Knoll done?
- Thread starter johnny
- Start date
You got it Evan! Obviously there are some things that are more important than racing. Everyone please say some prayers and hope all goes well.
J
Nitro Member
I was wondering that too? According to Kramer on Seinfeld you just write it off.lol.
Buddy
Nitro Member
Yes you can... I don't do our taxes but I believe there is a certain way of doing your taxes as a motorsports entity... Everything you do (food, gas, hotel, etc.) can be written off as advertising expense...
CJ Curtsinger
Bullet
Nitro Member
I would assume it is an advertising cost, therefor a tax deduction.
Joker
Nitro Member
Ok so we know for sure Ashley's team is done with Torco and I have heard that Creasy's in the same boat. So what about Jr Todd, Clay Millican, Jessie Harris, etc??? Surely somebody knows. I thank Evan for all he's done for the sport but this really blows especially 2 weeks from testing starting.
Someone can only write-off advertising expences for tax deductions for a certain number of years, and they must show an effort in profiting from a particular ad campaign before red (IRS) flags are thrown up...
Which is why 'MOST' sponsors come and go....
And Knoll/LucasKalitta/etc can step away from drag racing and the same show will continue...With or without em...
Which is why 'MOST' sponsors come and go....
And Knoll/LucasKalitta/etc can step away from drag racing and the same show will continue...With or without em...
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Buddy
Nitro Member
Zak
Nitro Member
I'm not and accountant - and I didn't stay at a Holiday Inn last night...
Advertising is a cost of doing business, like buying a computer or sticky notes. A company can spend as much on advertising as they like or need to to grow.
I think what Terry Jones is talking about above (correct me if I'm wrong) - is that the IRS will only allow a company to show losses against taxable income before they will disallow the deduction.
In other words - you can't creatively lose all of your profit to avoid paying taxes.
By the way.... off topic from this conversation
Terry, I think you are on to something.
Alan
Nitro Member
I think you can write-off advertising for as long as you want, but you don't want your business to show a loss for more than a few years in a row before the 'red flags' are raised by the IRS.
It seems that maybe only Mike Ashley's team might be out of the Torco loop, considring Jesse Harris just announced her full run yesterday. Maybe Evan wants to give other teams an opportunity to step up their programs. I'm sure we'll see more on this over the next couple days.
It seems that maybe only Mike Ashley's team might be out of the Torco loop, considring Jesse Harris just announced her full run yesterday. Maybe Evan wants to give other teams an opportunity to step up their programs. I'm sure we'll see more on this over the next couple days.
I posted this on the Mike Ashley thread too.
From what Evan put on his Myspace page, he is having some health issues that are a result of a car accident in 2004.
This quote is from Torco's Comp Plus dot com awards in 2005:
Knoll quicky credits a strong supporting cast as the key to his success, but those close to him know that his success comes from an undying desire to succeed. He's sometimes unconventional and lives life with the intensity of a candle burning at both ends. Knoll's physicians will tell you that he suffers from a condition that injects an overabundance of adrenalin into his system.
That condition is probably the one thing (along with the prayers of friends) that enabled Knoll to survive a single-car accident in a Dodge Viper that led to multiple brain bleeds.
All I care about at this point is for him to take care of himself and get well. Keep him is your prayers.
Also, Bobby Bennett is waiting for the official word, so please let them get that together and make the proper announcement.
From what Evan put on his Myspace page, he is having some health issues that are a result of a car accident in 2004.
This quote is from Torco's Comp Plus dot com awards in 2005:
Knoll quicky credits a strong supporting cast as the key to his success, but those close to him know that his success comes from an undying desire to succeed. He's sometimes unconventional and lives life with the intensity of a candle burning at both ends. Knoll's physicians will tell you that he suffers from a condition that injects an overabundance of adrenalin into his system.
That condition is probably the one thing (along with the prayers of friends) that enabled Knoll to survive a single-car accident in a Dodge Viper that led to multiple brain bleeds.
All I care about at this point is for him to take care of himself and get well. Keep him is your prayers.
Also, Bobby Bennett is waiting for the official word, so please let them get that together and make the proper announcement.
club
Nitro Member
I say blame it on the countdown
Careful Mike, they will start calling you PJ if you keep posting like this.
Well I definitely don't come here to read about or write about taxes, but since that is all I do, I'll clear the air a little bit.
The IRS is really sensitive about somebody claiming their hobby as a business. Rich people with ranches, race horses (these two are by far the most popular) and race cars . . . who take cash from an unlrelated venture (being a doctor is by far the most popular) get heavily scrutinized by the IRS.
There is a presumptive rule (IRC Sec 183(d) for those with no life) that says an activity generating a loss for 3 of 5 consecutive years is presumed to be a hobby (2 of 7 years for horses . . . damn lobbiest!).
If you are Torco race fuels, and the advertising doesn't create a loss, you can spend all you want if it makes sense on a pre-tax basis. Even if it does create a loss, and there are good business reasons for what you are doing, the presumption of a hobby can be overcome.
Personally, I'd be shocked if Evan was changing his direction simply because of the hobby loss rules. He's been great for the sport, and I certainly hope everything is OK with him.
The IRS is really sensitive about somebody claiming their hobby as a business. Rich people with ranches, race horses (these two are by far the most popular) and race cars . . . who take cash from an unlrelated venture (being a doctor is by far the most popular) get heavily scrutinized by the IRS.
There is a presumptive rule (IRC Sec 183(d) for those with no life) that says an activity generating a loss for 3 of 5 consecutive years is presumed to be a hobby (2 of 7 years for horses . . . damn lobbiest!).
If you are Torco race fuels, and the advertising doesn't create a loss, you can spend all you want if it makes sense on a pre-tax basis. Even if it does create a loss, and there are good business reasons for what you are doing, the presumption of a hobby can be overcome.
Personally, I'd be shocked if Evan was changing his direction simply because of the hobby loss rules. He's been great for the sport, and I certainly hope everything is OK with him.
"Dr. Dirt"
Nitro Member
Over the years, it seems as if they are quick to post the good news and quite slow or forgetful about the other. This is just my observation however and not to be seen as fact. Void where prohibited, I often do.
jackass
Nitro Member
luxexpress
Nitro Member
Lets all hope and pray that Evan has a full and speedy recovery. If you have seen the photos of the accident, you know that he is very lucky to still be with us and it is understandable that he is still suffering from it.
