Competitions and taxes

[indianagriller]

Just had a question pertaining to competition cooking and income taxes. This year (2012) is the first year as our legal catering company and we are registered as an LLC and also just recieved our EIN number. When it comes time to file taxes for 2012 what are the deductions you can take since doing competitions around our state help promote our business and sell our sauce and rub? I know coming to the internet for tax advice is usually not good, but i figured i had the best shot of getting advice here from people that have done it before. Thanks.

JT

 

[jaestar]

I believe if you use your LLC EIN and name for a contest and any winnings are paid to the LLC and costs come from the LLC you should be able to write off most of the expenses. I'm not a tax specialist but play one on the innerweb.