Do you sponsor a sports team, or have you thought about sponsoring one?
This kind of sponsorship can be great PR for your company and position you as a community-minded citizen. But what are the tax implications of becoming a team sponsor? What are the relevant questions you’ll need to ask yourself?
For example, can you deduct your sponsorship of a sports team, even one you play on? And can you write off the costs of uniforms, bats, balls, umpires, and travel?
You’ll get straight answers to important questions like these below when you speak with us at Meese Khan, LLP.
- We’ll explain the importance of Revenue Ruling 70-393. The ruling states that the monies spent to outfit and support your team are similar to monies spent on other methods of advertising. This means you can deduct those sports teams’ costs as business expenses for federal income tax purposes.
- We’ll tell you about the important Strong Construction case. Strong Construction Co, Inc. paid for uniforms, logo design, hats, T-shirts, sweatpants, coats, bags, and pants for all players on its sponsored teams. In addition, Strong provided equipment and tournament fees. The court ruled that the expenses were “ordinary and necessary” business expenses that Strong could deduct.
To schedule a free consultation and discuss business tax strategies contact Contact Meese Khan, LLP today!
Phone: 623 935 1005