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I need help with starting a Road/Mtb team for next year..(6 posts)

I need help with starting a Road/Mtb team for next year..853
Apr 15, 2003 7:45 AM
My friend and recently a new bike shop owner, wants to start a team and asked for my help in doing research and finding out as much as possible to make this happen.
Anybody have experience with this?...any pointers?
If he gives team uniforms and frames to the higher Cat's and pays for their races, is it Tax deductible?

Thanks for any info or links
re: I need help with starting a Road/Mtb team for next year..triple shot espresso
Apr 15, 2003 8:49 AM
I'm no tax lawyer but I believe you would have a hard time writing that off unless the team was set up as a non-profit charity and you got a tax id number.

I helped some guys start the HART team this year, http://www.haulnass.com. Here are some tips from the mistakes we made:

Start early, it's never early enough.
Order uniforms before December
To order uniforms that early you have to have your sponsors wrapped up.
Graphic designers and uniform companies only use vector graphic so if a sponsor tells you to get their logo off of their website tell them to go to their graphic artist and send you the correct file format, it'll be like .avi or something other than, .gif or .jpg. It sounds silly but this is possibly the hardest part.
Order extra uniforms.
Schedule team rides through the winter so guys can get to know each other.
Start small.
Try to create a team identity.

Where are you?

Good luck and have fun.
re: I need help with starting a Road/Mtb team for next year..853
Apr 15, 2003 9:25 AM
Thanks, for the tips.

We are in So-Cal - Glendale area, with so many shops around getting recognition thru racing,it is almost mandatory to have a team to get recognized as a legit shop.
We were just wondering about the free stuff we need to provide for higher Cat's (seems expensive, and writing it off would help) My friend (Semi-pro Mtb) rides for a local shop he gets free uniforms, frame and fork,tires, and paid races. That would really add up for a decent sized team.
When you get to a certain leveltriple shot espresso
Apr 15, 2003 10:16 AM
isn't it advertising, maybe one of the lawyers on the board can let us know. I figure anybody that I trust with a tax question is a little busy today.
Yes, advertising expense is a write-off for the shop.Spunout
Apr 15, 2003 10:24 AM
Can be everything, just keep good books.

This is from my knowledge of Canada's tax law, I'm very sure it is the same. 'Advertising/Promotional Activities' are an expense of doing business.

Registering the team as its own business/charitable foundation is for the big boys only, used to doctor expense positions and managing earnings by stowing cash as expenses in a foundation, only to suck it back later. IMHO. (Pre-Enron rant).
re: I need help with starting a Road/Mtb team for next year..Sharkman
Apr 15, 2003 10:24 AM
I'm a CPA with 30 years corporate tax experience. If the shop owner buys jerseys and kit for the riders, and the shop's name is on the jerseys, its very likely tax deductible as advertising. If the shop owner provides gear to the riders, he can generally write off his cost in the inventory, but not its retail value.

The law in this area is terribly complex, and the end result is impacted by lots of other circumstances that are unique to your friend. He should consult a good tax CPA for the help he is looking for.

But I think he should get some good tax deductions.

Bob