喫煙者
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 04-05-2012, 04:44 PM   #1
Hozman
Take a breath!
 
Hozman's Avatar
 
Join Date: 09-07-11
Location: Grain Valley, MO via Big Sky country
Downloads: 0
Uploads: 0
Default Do you do comp and have cater business?

Do you have a catering business and use the same business name as your team name for comp bbq? Since you are representing your company at the comp are you allowed to write off what you buy/use at the comp on your business taxes?
__________________
18.5 & 22.5 WSM-Weber one touch. Cyber Q Wi-Fi. Head cook Thick and Thin BBQ
Hozman is offline   Reply With Quote


Unread 04-05-2012, 04:51 PM   #2
big brother smoke
somebody shut me the fark up.


 
big brother smoke's Avatar
 
Join Date: 05-03-06
Location: Ventura, CA
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by Hozman View Post
Do you have a catering business and use the same business name as your team name for comp bbq? Since you are representing your company at the comp are you allowed to write off what you buy/use at the comp on your business taxes?

My tax professional has told me to write off my comp expenditures. If it does not work, I will let you know
__________________
Peace and Smoke,
BBS

Powered by the West Coast Offense: Big Poppa Smokers and Simply Marvelous

"Walk with Us"
big brother smoke is online now   Reply With Quote


Unread 04-05-2012, 05:45 PM   #3
GQue
On the road to being a farker

 
GQue's Avatar
 
Join Date: 08-10-10
Location: Superior CO
Downloads: 0
Uploads: 0
Default

Yes and Yes...

The way my accountant explained it to me is you have seven years to make money if you dont the IRS will consider it a hobby and not a for profit business, thus not allowing you to deduct things like trailers, pits, supplies, freezers, refrigerators etc.

Last year was my first full year and my accountant allowed me to deduct all the things mentioned above.
__________________
BGE XL
Gateway Drum
FEC-100
Memphis Pro
Gasser
CBJ #52802

Learn easy and effective tricks on the grill and smoker at my you tube channel:

https://www.youtube.com/user/BBQGQue
GQue is offline   Reply With Quote


Unread 04-05-2012, 05:50 PM   #4
butt head
is one Smokin' Farker
 
butt head's Avatar
 
Join Date: 01-29-06
Location: East Norriton,Pa.
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by GQue View Post
Yes and Yes...

The way my accountant explained it to me is you have seven years to make money if you dont the IRS will consider it a hobby and not a for profit business, thus not allowing you to deduct things like trailers, pits, supplies, freezers, refrigerators etc.

Last year was my first full year and my accountant allowed me to deduct all the things mentioned above.
same here but we were told 5 yr's. everything for comps is considerd marketing for the catering
__________________
John, Butt Head BBQ Team- No IQ required

meadow creek ts250- w/ 42 chicken cooker
butt head is offline   Reply With Quote


Unread 04-05-2012, 06:18 PM   #5
jbrink01
is Blowin Smoke!
 
jbrink01's Avatar
 
Join Date: 08-17-06
Location: Washington, Missouri
Downloads: 0
Uploads: 0
Default

Yes. What BBS says. So says my tax pro as well.
__________________
[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 04-05-2012, 06:55 PM   #6
BasicPatrick
Full Fledged Farker

 
BasicPatrick's Avatar
 
Join Date: 03-29-11
Location: Hyannis, MA on Ol'e Cape Cod
Downloads: 0
Uploads: 0
Default

you guys that are set up and deducting comp expenses; are you set ups as LLC or other type of business?
__________________
The Basic BBQ Team
FEC100, Yoder 640,
Traeger Texas 075 w/Savannah Stoker PID
26.75 Weber OTG
22.5 WSM w/Pitmaster IQ 110
Camp Chef Pro 60
Wicked Pissah Super Fast Basic Blue Thermapen
32' Fleetwood Bounder (Motorhome).
NEBS, KCBS, KCBS CBJ
"Rub Some Sunshine on Your Face"--Richard Pryor
BasicPatrick is offline   Reply With Quote


Unread 04-05-2012, 08:21 PM   #7
Ulcer Acres
Full Fledged Farker
 
Join Date: 09-20-05
Location: Jacksonville,IL
Downloads: 0
Uploads: 0
Default

But, if they declare it a non-profit business they can go in reverse and then you cant declare it as an expense
__________________
Randy Twyford
Twyford BBQ & Catering
Ole Hickory CTO
Backwoods Fatboy
Large Big Green Egg
[URL="http://www.twyfordbbq.com"]www.twyfordbbq.com[/URL]
Ulcer Acres is offline   Reply With Quote


Thanks from:--->
Unread 04-05-2012, 09:17 PM   #8
jbrink01
is Blowin Smoke!
 
jbrink01's Avatar
 
Join Date: 08-17-06
Location: Washington, Missouri
Downloads: 0
Uploads: 0
Default

We are a profitable catering business with sales in the $000,000's and tax exempt purchases that run around 40% of sales, more or less. You do need to be cognisant that your marketing / comp expenses as a percentage of total sales don't raise any red flags. We are also blessed to have a few sponsors, so we include that and winnings as contest income. For ease of record keeping, get yourself 1 credit card and use it for everything business related and nothing else. Pay it off every month. I do know those that use CASH for everything (I'm not one of them), but then that makes this whole dissertation a moot point.
__________________
[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 04-06-2012, 09:02 AM   #9
Wampus
somebody shut me the fark up.

 
Wampus's Avatar
 
Join Date: 06-05-09
Location: Mooresville, IN
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by GQue View Post
Yes and Yes...

The way my accountant explained it to me is you have seven years to make money if you dont the IRS will consider it a hobby and not a for profit business, thus not allowing you to deduct things like trailers, pits, supplies, freezers, refrigerators etc.

Last year was my first full year and my accountant allowed me to deduct all the things mentioned above.
You mean you have to do it for 7 years BEFORE you can claim it as a "for profit" business or that if you end up doing it for less than 7 years you're at risk of getting nailed for deducting?
__________________
Big JT's Smokin' BBQ Competition Team

"The path was worn and slippery. My foot slipped from underneath me, knocking the other out of the way, but I recovered and said to myself, 'It's a slip and not a fall.'"
-Abraham Lincoln
Wampus is online now   Reply With Quote


Unread 04-06-2012, 10:20 AM   #10
Bourbon Barrel BBQ
is one Smokin' Farker
 
Join Date: 06-27-10
Location: Louisville, KY
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by Wampus View Post
You mean you have to do it for 7 years BEFORE you can claim it as a "for profit" business or that if you end up doing it for less than 7 years you're at risk of getting nailed for deducting?
Basically if you don't claim a profit after the first 7 years are up the IRS will declare your "business" a hobby and stop allowing you to deduct things on your taxes on year 8 and up.
__________________
www.bourbonbarrelbbq.com
Bourbon Barrel BBQ is offline   Reply With Quote


Unread 04-06-2012, 11:02 AM   #11
GQue
On the road to being a farker

 
GQue's Avatar
 
Join Date: 08-10-10
Location: Superior CO
Downloads: 0
Uploads: 0
Default

Quote:
Originally Posted by Bourbon Barrel BBQ View Post
Basically if you don't claim a profit after the first 7 years are up the IRS will declare your "business" a hobby and stop allowing you to deduct things on your taxes on year 8 and up.
Correct - he explained this is very common with horses - People will buy horses and spend hundreds of thousands of dollars on them and they will try to race them every now and then to use it as a business expense - the IRS set that guideline to create a point where you can no longer allow the deductions.
__________________
BGE XL
Gateway Drum
FEC-100
Memphis Pro
Gasser
CBJ #52802

Learn easy and effective tricks on the grill and smoker at my you tube channel:

https://www.youtube.com/user/BBQGQue

Last edited by GQue; 04-06-2012 at 11:03 AM.. Reason: hooked on phonics didnt work for me
GQue is offline   Reply With Quote


Unread 04-06-2012, 11:21 AM   #12
dmprantz
is One Chatty Farker
 
Join Date: 01-11-08
Location: Nashville
Downloads: 0
Uploads: 0
Default

Does any one do this with a pure comp team, no catering business? My understanding is that as a hobby, you can deduct only as much as your revenue or income, but as a business, you can deduct losses above your income within the timelines mentioned above. Deducting all expenses would be great, but since I don't really cater, I wonder how legal that would be.

dmp
dmprantz is offline   Reply With Quote


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 01:45 PM.


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.