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Are there any legitimate ways of getting some tax cuts from all the money you spend on karting if you are a normal employee, i.e. work a normal job and get paid a wage/salary?

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My daughter is a Tax Lawyer.  Her advice is - "Get the best advice possible"! - typical of a lawyer I guess!

Ive got this Im off my nut thing ready for when they turn up I have been laying the foundation for years LOL

dont spend what you havent got try frisbees they are cheep.

http://law.ato.gov.au/atolaw/view.htm?locid='AID/AID2005284'

Issue

Can the taxpayer claim an income tax deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for expenses incurred in sponsoring motor cycle racing?

Decision

Yes. The taxpayer is entitled to claim an income tax deduction for expenses incurred in sponsoring motor cycle racing under section 8-1 of the ITAA 1997.

Facts

The taxpayer operates a business.

The taxpayer intends to sponsor motor cycle racing in the belief that the exposure arising from the sponsorship will benefit his business in the form of advertising.

The taxpayer will provide sponsorship for up to four motor cycle riders. This will include paying the day to day costs such as fuel, repairs, spare parts and safety clothing only.

The motor cycles and a support vehicle as well as the clothing and caps worn by the riders will carry the taxpayer's business name.

In addition, the taxpayer intends to hand out business cards at the motor cycle events to stimulate interest in his business through his position as sponsor of the sporting event.

The taxpayer will not pay the costs of purchasing motor cycles.

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

i have a great way to get some money back on tax it works really good

if you would like instructions of how'> write to me

ted kelly cell 44 longbay  hey i didnt say it worked

Short answer yes you can but the main condition was it must be justified that it is a legitimate advertising and promotional activity and monitored through sponsorship vs total financial turnover.  Also the very vague but 'defined' response each time is any sponsorship or advertising within an amateur area must be within arms length of the business' main activity.  Finding another small business (preferably company) and sponsoring each other an agreed amount and having all the paperwork in place is the only option that may work - but limited to how much money you make and the related activities you pursue to increase income (the point of advertising and sponsorship).

Basically you can not sponsor yourself to compete or partake in a hobby.  If it becomes professional OR there is clear exposure to the general public (and therefore customers) your door may be open, slightly.  So karting wise unless you have large financial income (was told sponsorship totaling more than 5% of total income will almost definitely get flagged) looking to only compete at sponsored state/national level events with mainstream media coverage, signage, sponsorship agreements/contracts, time frames, monetary figures and a proactive presence at every event you are represented, I wouldn't push your luck...

ATO does not sponsor hobbies and without prize money go karting is DEFINITELY considered a hobby outside the upper echelons.

I work at a resort/hotel that may be willing to sponsor me, would that be tax deductable for them?
I would see it as advertising for them and maybe other kart drivers might get a discount if they stay with the resort as its a sport people travel and stay at hotels.
Im talking to my boss but if its tax deductable i might just get somewhere

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