Sponcer money..... 1099 ????

[Rich67stang]

I opened a S corporation back in 1996 when I first got started/sponsored. The checks are made out to the
business as such and you are allowed operating expenses for that corporation. Keep in mind that at the end of the year you must file a corp. tax return besides your personal, but if the corporation shows/has a loss it is reflected on your personal tax return. Hope this helps.



Rich67stang

[Julie Jordan]

If you receive over $600 in non-employee compensation the payor should issue you a 1099.

Combining income from one occupation (finance) with expenses of another (racing) will not fly under audit. Whether you get audited or not is the million dollar question. So how brave are you?

[Ed Wright]

Originally Posted by Julie Jordan

If you receive over $600 in non-employee compensation the payor should issue you a 1099.

Combining income from one occupation (finance) with expenses of another (racing) will not fly under audit. Whether you get audited or not is the million dollar question. So how brave are you?

I don't think they will buy the corp loosing money every year either, will they?

[Julie Jordan]

More than likely, not. But it all depends on if you get pulled for an audit or not.

[Jack Matyas]

Carlos -- I've been in the automobile business all of my adult life and I can tell you there's only one way to handle this income in the IRS's eyes -- pay the tax - period -- no and's -- if 's or but's about it ! ! ! !

[Regan Wilson]

So from what I read do I need my sponsor to give me a 1099 at the end of the year ? By years end I will have recieved around 2500 dollars . I figured that I would have to show it as income and have copies of all the checks .

[Julie Jordan]

Originally Posted by Regan Wilson

So from what I read do I need my sponsor to give me a 1099 at the end of the year ? By years end I will have recieved around 2500 dollars . I figured that I would have to show it as income and have copies of all the checks .

Technically, you are supposed to report all income regardless of whether you received a 1099 or not.

[Philip Saran]

Maybe things have changed some over the years, but in the early 80's
when I ran a I/SA 340 Duster, I claimed the car/truck/expenses on my
tax's and did write off what I had spent and depriciated the cost of the
truck I used as a tow vehicle.

I did get audited the first year, but the only item they questioned was
how I had come up with the value of the truck. I had to have a form
filled out by the used car manager where I worked as a service writer
at the time and turned that back into the IRS, that value was higher
that what I had even claimed in the first place.

That was my experience, your's may differ.

Always best to talk with your tax person, and if you do NOT have a
tax person then I would highly recommend you contact Jordan & Jordan
CPA's in Modesto CA for help. Just ask for Julie.

[Lou SG2340]

Originally Posted by Ed Wright

I don't think they will buy the corp loosing money every year either, will they?

I ran my racing as a S Corp for 10 yrs. Showed a loss every year, never a problem. IRS has cracked down on S Corps that do not show SS taxes being paid. I swiched to a LLC this year

[BIZMANRACING]

julie

you seem to be the expert on this topic. or should i say you come from a position of strength since it appears to be your "day job" profession.

thus, can this be done.

i open up an llc corp. i'll call it "kiss my irs". as the owner of this corperation i will sell out of my garage to other racers, and construction workers, drs lawyers etc. the software to print tech cards lets say from our racing lap-tops that we keeep in our trailor. now lets say that i am a terrible sales-person (not-true) and i only sell 5. now thats whats real and lets say the profit is 1000. now lets say that i tell my venders (from my day job) to make my checks out to "kiss my irs" instead of to me personally. so now i'm actually depositing money into my business account, that i actually earned at my "day job". but, who really knows? now lets say thats 2000 a month so for the year i made 25,000 in my company "kiss my irs"

now from this company, my expences were this and that, and as adverticing i ran a race car since my product that i sale is a "racing product" then there is the depression of the tow vehicle, rent on my garage, a phone and so on. and did i mension that i blew the motor up which was lets say 8000 that my sponcer picked up, i paid the rest from my personal money. and after it was said and done. the company was in the black lets say 5000.

so, does that mean that i will file a corp taxes on that profit.

and is there anything wrong with the explaination above. if i win anything the owner is the businesss so they would file it as winning/ income. so can i pay myself as a driver say 25% and count that as income for my "personal taxes".

thanks for the help. this topic is so hard to figure out.