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?
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.
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?
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.