The BBQ BRETHREN FORUMS.


Forum Portal Recipes Smoke Signals Magazine Welocme Merchandise Associations Purchase Subscription Brethren Banners
Go Back   The BBQ BRETHREN FORUMS. > Discussion Area > Competition BBQ

Notices

Competition BBQ *On Topic Only* Discussion regarding all aspects of Competition BBQ. Experiences competing or visiting, questions, getting started, Equipment, announcements of events, Results, Reviews, Planning, etc. Questions here will be responded to with competition BBQ in mind.


Reply
Thread Tools
Unread 02-22-2012, 08:25 AM   #1
BC Squared
Full Fledged Farker
 
Join Date: 09-16-11
Location: Kansas
Downloads: 0
Uploads: 0
Default Comp Team as a Business?

Anyone have their team set up as a business for tax purposes? Could this help recoup costs assuming you weren't winning every week??
BC Squared is offline   Reply With Quote


Unread 02-22-2012, 08:32 AM   #2
Still Smokin
Full Fledged Farker
 
Join Date: 10-20-10
Location: Lowcountry SC
Downloads: 0
Uploads: 0
Default

I was wondering the same thing or something similar.

If we are taxed on prize money, shouldn't we be able to deduct expenses?

Can this be done on a schedule C?
Still Smokin is offline   Reply With Quote


Unread 02-22-2012, 08:33 AM   #3
Bourbon Barrel BBQ
is one Smokin' Farker
 
Join Date: 06-27-10
Location: Louisville, KY
Downloads: 0
Uploads: 0
Default

Yep my team is setup as an LLC.
__________________
www.bourbonbarrelbbq.com
Bourbon Barrel BBQ is offline   Reply With Quote


Unread 02-22-2012, 08:54 AM   #4
Nordy
On the road to being a farker

 
Nordy's Avatar
 
Join Date: 01-16-11
Location: Ponca City, OK
Downloads: 0
Uploads: 0
Default

DISCLAIMER - (I deliver babies.. not tax forms)

Seems like there is a tax rule that you can only show a loss in a "business" for a limited number of years before it becomes a "hobby" and you can't deduct a loss on a "hobby"... But i think you can still offset winnings with documented expenses.

Maybe some tax professional can chime in...
Nordy is offline   Reply With Quote


Unread 02-22-2012, 08:58 AM   #5
jbrink01
is Blowin Smoke!
 
jbrink01's Avatar
 
Join Date: 08-17-06
Location: Washington, Missouri
Downloads: 0
Uploads: 0
Default

My comp team operates under my catering llc, so yes, it's financial performance factors into my tax liability.
__________________
[CENTER][B][/B] [/CENTER]
[CENTER][B][I][B]KCBS #13207[/B][/I][/B][/CENTER]
[CENTER][B][I]2013 Insane Can Posse [/I][I]Tour [/I][/B][/CENTER]
[CENTER][I]Sponsored By: [/I][/CENTER]
[CENTER][B][I]Gateway BBQ Store[/I][/B][/CENTER]
[CENTER][B][I]Blues Hog BBQ Company[/I][/B][/CENTER]
[CENTER][B][I]Plowboys BBQ Company[/I][/B][/CENTER]
jbrink01 is offline   Reply With Quote


Unread 02-22-2012, 09:01 AM   #6
SHBBQ
Knows what a fatty is.
 
Join Date: 12-30-11
Location: Weymouth, MA
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by Nordy View Post
DISCLAIMER - (I deliver babies.. not tax forms)

Seems like there is a tax rule that you can only show a loss in a "business" for a limited number of years before it becomes a "hobby" and you can't deduct a loss on a "hobby"... But i think you can still offset winnings with documented expenses.

Maybe some tax professional can chime in...
I'm no tax professional, but I would just change the "business name" every few years if you cannot turn a profit with it. different name, different business. maybe.
SHBBQ is offline   Reply With Quote


Unread 02-22-2012, 09:02 AM   #7
ThomEmery
Babbling Farker
 
ThomEmery's Avatar
 
Join Date: 08-20-05
Location: Indio Ca.
Downloads: 0
Uploads: 0
Default

Cater a few times a year and pay a little tax on the income
win win
__________________
Catering, Contests, and Community Service

Team BBQ Thom.com
Kyle Emery Head Cook
ThomEmery is offline   Reply With Quote


Thanks from:--->
Unread 02-22-2012, 09:11 AM   #8
Ford
is Blowin Smoke!
 
Ford's Avatar
 
Join Date: 04-14-07
Location: Lakeland Florida
Downloads: 0
Uploads: 0
Default

It's a hobby so you can offset expenses against income. Just can't take a loss. No need to incorporate. Just keep receipts and fill out the IRS form.
__________________
Ford
Retired competition cook. BBQ mentor.
Ford is offline   Reply With Quote


Thanks from:--->
Unread 02-22-2012, 09:41 AM   #9
BC Squared
Full Fledged Farker
 
Join Date: 09-16-11
Location: Kansas
Downloads: 0
Uploads: 0
Default

We cater a time or two...so that seems like the way to go. Any other suggestions are appreciated!
BC Squared is offline   Reply With Quote


Unread 02-22-2012, 09:51 AM   #10
MoKanMeathead
is One Chatty Farker
 
MoKanMeathead's Avatar
 
Join Date: 05-02-05
Location: Grain Valley, MO
Downloads: 0
Uploads: 0
Default

You can claim hobby expenses up to the amount of reported income...however, hobby expenses are subject to the 2% of AGI restriction. Assuming you did have any other 2% deductions you would pay tax on your winnings - up to 2% of your AGI.

...At least that is the way I read the form and instructions.
MoKanMeathead is offline   Reply With Quote


Unread 02-22-2012, 10:17 AM   #11
HawgNationBBQ
Full Fledged Farker

 
HawgNationBBQ's Avatar
 
Join Date: 05-17-09
Location: Phoenixville, PA
Downloads: 0
Uploads: 0
Default

LLC here.
__________________
Michael
KCBS, Certified Judge# 31757, MABA member
-- JAMBO / J-3
-- Backwoods Competitor
-- Ugly Drum Smoker
-- XL BGE

HAWG Nation on Twitter: @HawgNationBBQ

www.TheBestMeatRub.com
HawgNationBBQ is offline   Reply With Quote


Unread 02-22-2012, 10:34 AM   #12
Podge
is One Chatty Farker
 
Join Date: 09-25-06
Location: Elk Creek, Ky.
Downloads: 0
Uploads: 0
Default

Ford is right.. that's what I do.
Podge is offline   Reply With Quote


Unread 02-22-2012, 04:46 PM   #13
trueque
Full Fledged Farker
 
Join Date: 05-17-10
Location: Chesterfield, MO
Downloads: 0
Uploads: 0
Default

LLC here for 2012.


Sent using Tapatalk
__________________
Michael
[URL="http://www.truequebbq.com"]TrueQue Competition BBQ Team[/URL]

Backwoods Competitor Stoked
Backwoods Party
Weber Smokey Joe
trueque is offline   Reply With Quote


Unread 02-22-2012, 06:21 PM   #14
CivilWarBBQ
is One Chatty Farker
 
CivilWarBBQ's Avatar
 
Join Date: 08-08-07
Location: Cartersville, GA
Downloads: 0
Uploads: 0
Default

LLC in 2011.

It's cleaner for us to keep the team's finances totally separate from the restaurant books.

Avoids the unpleasant surprise of the Head Cook getting 1099s on his personal taxes. Won't save you any money though. If you win more than you spend, you're gonna have to give the gubmint their cut, plain and simple.
CivilWarBBQ is online now   Reply With Quote


Unread 02-22-2012, 06:35 PM   #15
Lake Dogs
Quintessential Chatty Farker

 
Lake Dogs's Avatar
 
Join Date: 07-14-09
Location: Lake Sinclair, GA
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by Ford View Post
It's a hobby so you can offset expenses against income. Just can't take a loss. No need to incorporate. Just keep receipts and fill out the IRS form.
I am a tax pro. I dont/wont offer tax advice here. However, this IS the correct answer. Unless you're actually a caterer, etc. and this is a business, there is no need to LLC, etc. However, like Civil said above, IF you are a caterer or in the restaurant business, you may want to do it for any number of reasons; he gave a good one.

All expenses, gas, mileage, rubs, fuel, meat, entry fees, etc. etc. etc. can be used to offset any winnings. Very few teams, when you factor in ALL the costs, actually have to report $$$ income.
__________________
Hance - Lake Dogs Cooking Team - MiM/MBN/GBA CBJ and comp cook
Lake Sinclair, GA (strategically about an hour from everywhere)
Lake Dogs is offline   Reply With Quote


Thanks from:--->
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Loading



All times are GMT -5. The time now is 09:01 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
vBulletin Optimisation provided by vB Optimise v2.6.0 Beta 4 (Lite) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.
2003 -2012 © BBQ-Brethren Inc. All rights reserved. All Content and Flaming Pig Logo are registered and protected under U.S and International Copyright and Trademarks. Content Within this Website Is Property of BBQ Brethren Inc. Reproduction or alteration is strictly prohibited.
no new posts