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 when you read my new article titled Q&A: Deduct Your Costs of Sponsoring Sports Teams.
Three ways our fact-filled article can help you:
- 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. You’ll get the whole story when you read the full article.
- We’ll tell you about the important Strong Construction case. Strong Construction, Co, Inc. paid for uniforms, logo design, hats, T-shirts, sweat pants, 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. We’ll give you all the details when you read the full article.
- You’ll learn how James Bower came out a winner. Jim created the Lafayette Bower Housing Hustlers with a roster of twelve former Indiana college basketball players and a coach. Bower was both an assistant coach and a player. The court noted the Bower’s sponsorship increased his commodity brokerage business commissions and generated additional clients. As a result, his sponsorship expenses were deemed to be deductible business expenses as you’ll learn when you read the full article.