How does sponsorship work?

K.Snyder · Post by **K.Snyder** » Mon Dec 05, 2005 4:17 pm

I need to know how sponsorship works as far as how much of it is tax deductable and how businesses that give money for their advertisement are given a tax break or how all that works.

I need a sponsor for my race car and I need more information, as far as the taxes, so that I can show them how they can benifit by more than just having their name shown to thousands of fans each week..

I need a proposition they cant refuse.

For instance: I am looking for $2000 a year for the main sponsor of my car -- how much of that is tax deductable and can they use alot, if not, all of that as a tax right off?

If anyone knows a link so I can learn about this that is fine too.

Nomad · Post by **Nomad** » Mon Dec 05, 2005 4:52 pm

I think you can buy little stickers at K Mart, theyre in the Hot Wheels and Matchbox race car section.

lady cop · Post by **lady cop** » Mon Dec 05, 2005 5:09 pm

i'm going to start sending you legal bills.......google! :driving:

CARLA · Post by **CARLA** » Mon Dec 05, 2005 9:27 pm

KC, I believe that all sponsorship of any kind are tax deductible. I suggest you go to the IRS site and look for grants, sponsorships, charities, non-profits and business related deductions.

http://www.irs.gov/formspubs/index.html

K.Snyder · Post by **K.Snyder** » Tue Dec 06, 2005 6:37 am

Nomad wrote: I think you can buy little stickers at K Mart, theyre in the Hot Wheels and Matchbox race car section.

My toys are a little bit bigger than that.......

and a little bit faster too.

K.Snyder · Post by **K.Snyder** » Fri Dec 09, 2005 7:41 pm

JAB wrote: I'm not an expert but it could also be construed as advertising for the company putting up the $. In that case, it's just a business expense to them with a perceived value vs. a write off.

Isnt all advertisement expenses eligable for a tax write off??