Sponsorship

[peggysioux]

I have a taxpayer that has a S-Corp business and would like to "sponsor" his son in his trapshooting events. I know he is just looking for write-offs, but he has put the business company name on son's trapshoot jacket and other items. He has told me that he feels it is a form of advertisement and feels that he can get business from this advertisement. What expenses can he legitimately deduct - he is wanting to write off event fees, travel expenses, equipment, the kitchen sink........I know he is stretching it, but I also know there are many corporations that truly sponsor people and write off deductions. How would other tax preparers determine what expenses are deductible. I do want to give him all the deductions he can possible have, but don't want to extend my neck in the process.

[Jiggers]

What is his business?

I have a taxpayer that has a S-Corp business and would like to "sponsor" his son in his trapshooting events. I know he is just looking for write-offs, but he has put the business company name on son's trapshoot jacket and other items. He has told me that he feels it is a form of advertisement and feels that he can get business from this advertisement. What expenses can he legitimately deduct - he is wanting to write off event fees, travel expenses, equipment, the kitchen sink........I know he is stretching it, but I also know there are many corporations that truly sponsor people and write off deductions. How would other tax preparers determine what expenses are deductible. I do want to give him all the deductions he can possible have, but don't want to extend my neck in the process.

What type of business is he in? Is it related to trapshooting? Guns, ammo, equipment, etc.?

I sponsor baseball teams, football teams, all kids. Hoping to generate some business for my tax preparation business. But I have no children participating.

[peggysioux]

Sponsorship

Electrical business - nothing to do with trapshooting.

[luke]

Reasonable AND

necessary to the electrical business? Company name of jacket = yes, travel, fees etc = no

[Lion]

Own Child

I vaguely remember something about deductions being limited if your own child participates. I suggest you research carefully.

[AJsTax]

In this case

I would have to say, with the information we have at this point; if it is a league team that he is sponsoring then the cost of the league sponsorship would be an advertising expense. Just like a ball team, etc. If it is just the son shooting (good for him, it is a fantastic sport!) then the cost of having the name added to the vest and jacket would be an advertising expense, not the cost of the vest or jacket because he has to have them anyway and the father is not in the business of selling them.That would be the total extent of the deductible expenses.
I have sponsored teams and shot on sponsored teams in the past and currently and I am fairly comfortable in my opinion on this.