Sponcer money..... 1099 ????

Tim Kish · 07-30-2008, 10:27 AM

Question most likely for Julie -

My understanding is sponsorship dollars be handled different ways. 1) Sponsor dollars are entered as income, 1099 is required and income tax is applied. 2) Your racing "business" sells a product (advertising signage). then wouldn't the sponsor dollar be purchasing product for which you would be required (with license) to pay only sales tax on? Option 2 to me seems the most legitimate as the race car / trailer is a traveling billboard (see DOT regulations fore business use of trailer - whole seperate issue) so you are selling a product, not just receiving income.

07-30-2008, 10:27 AM	#10
Tim Kish Member Join Date: Nov 2003 Location: Kalamazoo, MI Posts: 281 Likes: 2 Liked 11 Times in 4 Posts	Re: Sponcer money..... 1099 ???? Question most likely for Julie - My understanding is sponsorship dollars be handled different ways. 1) Sponsor dollars are entered as income, 1099 is required and income tax is applied. 2) Your racing "business" sells a product (advertising signage). then wouldn't the sponsor dollar be purchasing product for which you would be required (with license) to pay only sales tax on? Option 2 to me seems the most legitimate as the race car / trailer is a traveling billboard (see DOT regulations fore business use of trailer - whole seperate issue) so you are selling a product, not just receiving income. __________________ Tim Kish 3032 SS/GS