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

Julie Jordan · 07-30-2008, 04:03 PM

Quote:

Originally Posted by BIZMANRACING

julie

you seem to be the expert on this topic. or should i say you come from a position of strength since it appears to be your "day job" profession.

thus, can this be done.

i open up an llc corp. i'll call it "kiss my irs". as the owner of this corperation i will sell out of my garage to other racers, and construction workers, drs lawyers etc. the software to print tech cards lets say from our racing lap-tops that we keeep in our trailor. now lets say that i am a terrible sales-person (not-true) and i only sell 5. now thats whats real and lets say the profit is 1000. now lets say that i tell my venders (from my day job) to make my checks out to "kiss my irs" instead of to me personally. so now i'm actually depositing money into my business account, that i actually earned at my "day job". but, who really knows? now lets say thats 2000 a month so for the year i made 25,000 in my company "kiss my irs"

now from this company, my expences were this and that, and as adverticing i ran a race car since my product that i sale is a "racing product" then there is the depression of the tow vehicle, rent on my garage, a phone and so on. and did i mension that i blew the motor up which was lets say 8000 that my sponcer picked up, i paid the rest from my personal money. and after it was said and done. the company was in the black lets say 5000.

so, does that mean that i will file a corp taxes on that profit.

and is there anything wrong with the explaination above. if i win anything the owner is the businesss so they would file it as winning/ income. so can i pay myself as a driver say 25% and count that as income for my "personal taxes".

thanks for the help. this topic is so hard to figure out.

"Technically" what your are proposing is not correct. Income and expenses are to be allocated to each separate venture, not combined. What you can get away with, who knows? Depends on (1) if you get audited and (2) how detailed your auditor is.

Jack Matyas · 07-30-2008, 04:30 PM

Julie -- Soon we'll take up a collection for Bizman so we may send him cigarettes while he's at Levinworth......

BIZMANRACING · 07-30-2008, 06:34 PM

thanks jack.....lol. after 20 years in the navy, or as they say 20 years of undected crime i never made to the big house in kansas, or was i just lucky. maybe this venture will get me in the jail......lol.

julie i'm missing something. (big surprise) my major need is to get that 1099 from my vendor drafted to my business in lieu of to me. why can't i do that? unless sponcers give money to racers and have no requirement to show an accounting for it. that doesn't seem right. whats to keep the racer from mixing sponcer funds with his owe?

anyway, this whole business thing is to reduce my total tax base. i'm tired of giving a ton of money to the irs. and besides i am planing on opeing up a business, i have taken steps for that. in time i guess i would be saling race trailers as well as some of the things that go inside the trailer. but, to start i'd be saling out of my basement, and in time i would purchase or rent some real estate and put trailors on the lot. i would still keep my day job at least for awhile, and hire someone to run it. its just not going to happen from the get go. since when and if i give up my day job those vender checks would stop.

so please check again. i may have my wording wrong, or skipping a step in my explaination. but, it seems that it could happen. i rather pay business tax on 25,000 instead of my income plus my wifes and the 25,0000. oh and i also get a penison from the navy. frankly the pension i get from the navy is what i pay in extra taxes every single f&*$*ken year.

so please get me close. if not i guess its back to the drawing board.

by the way jack. what do you do in the car business down in A.C.

Mike Meier · 07-30-2008, 06:34 PM

Quote:

Originally Posted by Jack Matyas

Julie -- Soon we'll take up a collection for Bizman so we may send him cigarettes while he's at Levinworth......

On a funny side note, I'm an auditor, and my territory just happens to cover East Brunswick, NJ (as noted on the sidebar under Bizman's name). I think what he is trying to accomplish is giving people like me a headache. And I'm known to be a bit of a pain in the ***.

BIZMANRACING · 07-30-2008, 06:40 PM

hi mike

lets not get to excited about this....lol.

sorry for the headache. all in good fun right.......

Mike Meier · 07-30-2008, 06:54 PM

Quote:

Originally Posted by BIZMANRACING

hi mike

lets not get to excited about this....lol.

sorry for the headache. all in good fun right.......

Well lucky for you I work for an insurance company, not the IRS or the State....lol. Though I would have liked to see the look on your face when you read my post.

BIZMANRACING · 07-30-2008, 07:23 PM

LOL

i figured something like that....lol. i just knew that irs guys "probally" did race. but, yes mission accomplished you would of rolled over on the ground laughing had you seen my face.

i still wish something out of this. but, no i will not do something stupid. life is good, who needs jail or come face to face with the irs agent.

Julie Jordan · 07-30-2008, 06:37 PM

Quote:

Originally Posted by Jack Matyas

Julie -- Soon we'll take up a collection for Bizman so we may send him cigarettes while he's at Levinworth......

I agree. Like I said, income and expenses from separate businesses are to be reported SEPARATELY. You should consult your own tax advisor on how you can try to circumvent the rules.

G Schenck · 07-30-2008, 08:03 PM

Quote:

Originally Posted by Julie Jordan

how you can try to circumvent the rules.

Julie, I liked that wording. It's like what some racers do to the rule book.

Greg

Signman · 07-31-2008, 10:35 AM

Carlos

What you are asking is a gray area. Having been self employed for over 20 years there is plenty of that to explore. Some of those will get you into a big bill with the IRS and State of NJ. And they do not play well!!

What you are thinking of is a way to avoid paying income tax on a bonus. If it is in the form of a check and there is an audit, the issuer of the check is going to state the truth. The check can be written out to your wife, kid, company, what ever but it was written as a bonus for you selling their product. If you are unlucky it could be expensive.

Look at Al Sharpton. A major public figure in NYC, NY State and at some level nationally. Doesn't pay taxes to the IRS for several years. Gets audited, goes to court and settles for much less than owed. His method works great if you owe enough that the savings minus the cost of accountants and attorneys is a profit. (although he could afford it)
A public figure getting press over this cannot be the only plus.

Can you stomach handle it! How big are your family jewels?

The best advise is to search out a good accountant with integrity. A former IRS auditor or someone who has had a lot of exposure to audits and auditors would be good.

Hey you can always do what you please and answer for it later! Play dumb and deal with the phone calls. paper work, threats, public embarrassment and fines. Hell you can be another one of those who the IRS ripped off!!

Just kidding! What you are describing is not a good idea!
Jack has been around for years and knows the ins and outs!
Julie does not give out bad advice!

07-30-2008, 04:30 PM	#2
Jack Matyas Live Reporter Join Date: Nov 2001 Location: Bethlehem , PA -Christmas City , USA Posts: 4,932 Likes: 408 Liked 2,052 Times in 400 Posts	Re: Sponcer money..... 1099 ???? Julie -- Soon we'll take up a collection for Bizman so we may send him cigarettes while he's at Levinworth...... __________________ Jack Matyas 1547 FS/C 2015 Camaro COPO # 62- 2012 Camaro Convertible COPO

07-30-2008, 06:34 PM	#3
BIZMANRACING Junior Member Join Date: Oct 2004 Location: east brunswick, new jersey Posts: 62 Likes: 0 Liked 0 Times in 0 Posts	Re: Sponcer money..... 1099 ???? thanks jack.....lol. after 20 years in the navy, or as they say 20 years of undected crime i never made to the big house in kansas, or was i just lucky. maybe this venture will get me in the jail......lol. julie i'm missing something. (big surprise) my major need is to get that 1099 from my vendor drafted to my business in lieu of to me. why can't i do that? unless sponcers give money to racers and have no requirement to show an accounting for it. that doesn't seem right. whats to keep the racer from mixing sponcer funds with his owe? anyway, this whole business thing is to reduce my total tax base. i'm tired of giving a ton of money to the irs. and besides i am planing on opeing up a business, i have taken steps for that. in time i guess i would be saling race trailers as well as some of the things that go inside the trailer. but, to start i'd be saling out of my basement, and in time i would purchase or rent some real estate and put trailors on the lot. i would still keep my day job at least for awhile, and hire someone to run it. its just not going to happen from the get go. since when and if i give up my day job those vender checks would stop. so please check again. i may have my wording wrong, or skipping a step in my explaination. but, it seems that it could happen. i rather pay business tax on 25,000 instead of my income plus my wifes and the 25,0000. oh and i also get a penison from the navy. frankly the pension i get from the navy is what i pay in extra taxes every single f&$ken year. so please get me close. if not i guess its back to the drawing board. by the way jack. what do you do in the car business down in A.C. __________________ S/ST 1739 Carlos Mendes

07-30-2008, 06:40 PM	#5
BIZMANRACING Junior Member Join Date: Oct 2004 Location: east brunswick, new jersey Posts: 62 Likes: 0 Liked 0 Times in 0 Posts	Re: Sponcer money..... 1099 ???? hi mike lets not get to excited about this....lol. sorry for the headache. all in good fun right....... __________________ S/ST 1739 Carlos Mendes

07-30-2008, 07:23 PM	#7
BIZMANRACING Junior Member Join Date: Oct 2004 Location: east brunswick, new jersey Posts: 62 Likes: 0 Liked 0 Times in 0 Posts	Re: Sponcer money..... 1099 ???? LOL i figured something like that....lol. i just knew that irs guys "probally" did race. but, yes mission accomplished you would of rolled over on the ground laughing had you seen my face. i still wish something out of this. but, no i will not do something stupid. life is good, who needs jail or come face to face with the irs agent. __________________ S/ST 1739 Carlos Mendes

07-31-2008, 10:35 AM	#10
Signman Senior Member Join Date: Oct 2003 Location: Lower Slower Delaware Posts: 535 Likes: 22 Liked 269 Times in 99 Posts	Re: Sponcer money..... 1099 ???? Carlos What you are asking is a gray area. Having been self employed for over 20 years there is plenty of that to explore. Some of those will get you into a big bill with the IRS and State of NJ. And they do not play well!! What you are thinking of is a way to avoid paying income tax on a bonus. If it is in the form of a check and there is an audit, the issuer of the check is going to state the truth. The check can be written out to your wife, kid, company, what ever but it was written as a bonus for you selling their product. If you are unlucky it could be expensive. Look at Al Sharpton. A major public figure in NYC, NY State and at some level nationally. Doesn't pay taxes to the IRS for several years. Gets audited, goes to court and settles for much less than owed. His method works great if you owe enough that the savings minus the cost of accountants and attorneys is a profit. (although he could afford it) A public figure getting press over this cannot be the only plus. Can you stomach handle it! How big are your family jewels? The best advise is to search out a good accountant with integrity. A former IRS auditor or someone who has had a lot of exposure to audits and auditors would be good. Hey you can always do what you please and answer for it later! Play dumb and deal with the phone calls. paper work, threats, public embarrassment and fines. Hell you can be another one of those who the IRS ripped off!! Just kidding! What you are describing is not a good idea! Jack has been around for years and knows the ins and outs! Julie does not give out bad advice! __________________ Frank Ferrucci I/SA 1271 "Be Thankful for the Gifts You are Given"