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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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I'm self empolyed and it doesn't matter how many times I've asked my accountant

the answer is always  the same

NO!!!!!

I tell him that others at the track say they claim it as a tax deduction

He shakes his head and says

NO!!!!

So I doubt that there would be any way for an employee to claim anything

If there are any accountants out there who can tell me how to claim I'd like to hear how.

I am not an accountant but what John says is correct, sponsorship is a legitimate tax deduction. I have heard of self employed karters sponsoring each other. I dont believe you can actually sponsor yourself.

Find a like minded person at your club and bingo you sponsor him for 5k or whatever a year and he sponsors you. So Coles Catering sponsors Big Johns Cleaning Co and Big Johns Cleaning Co sponsor's Coles Catering. That might work. Your accountant should put it down to sponsorship on your tax return as an expense.  I would suggest that you make it legitimate and have Coles Catering signage on Big Johns kart and  suits/signage etc and visa versa and have photographs of this.

 Maybe ask your accountant if you can sponsor someone else and see what he/she says. It should be no different to sponsoring a race car.

FURZ

  Apologies about the catering and cleaning business names they just seemed to have a nice ring about them.
Anthony Coles said:

I'm self empolyed and it doesn't matter how many times I've asked my accountant

the answer is always  the same

NO!!!!!

I tell him that others at the track say they claim it as a tax deduction

He shakes his head and says

NO!!!!

So I doubt that there would be any way for an employee to claim anything

look out the ATO`s onto yous ;)

I have my own buiseness(partnership) and I have my buisness name on the karts. And all my repair invoices are handed in when I do my tax.My accoutant claims some but not all at tax time.Not sure how but who cares when you get something back at tax time.

what if you use it as a way of advertising then name the price 

Maybe - only maybe - if you plastered your kart with your own stickers advertising your business.

 

On the other hand, you could open a kart shop, or build engines for profit (in both cases with an appropriate ABN), and use your karting as a promotional vehicle for advertising.

 

Terry Sheedy

Ill tell you who will care,

It will be you when the auditor comes around.

The funny thing with accountants is you sign the form in declaration that it is your responsibility.

Try saying its the accountants fault when they come knocking.

 

I too have enquired about this, I reckon the accountants that go with it are just playing the odds of you getting audited.

 

The only clear way where they couldnt get you would be as Simon suggests a couple of posts up.

What noone can ever prove is your intentions or verbal agreements.

If you have proof and arent trading inside yourself they cant do much but accept you are genuinely advertising on another entity looking for a genuine gain from advertising.

 

With all that said, one thing you can claim on your own kart would be sticker kits



Jason Pilfoot said:

I have my own buiseness(partnership) and I have my buisness name on the karts. And all my repair invoices are handed in when I do my tax.My accoutant claims some but not all at tax time.Not sure how but who cares when you get something back at tax time.

thats what audit protection insurance is for

 

And I did say (partnership) so my partner in buisness can give me some coin and that can be claimed as well.

Audit protection insurance??

Honestly never heard of it.

 

So I can basiclly claim that I dont earn any money for the year and audit protection insurance will save me?

Does it come with a get out of jail free card too?

 

Im curious to hear more about this place that will insure you against fraud

If I remember correctly audit protection insurance only covers you if nothing fishy is found.Even then it only covers the accountants fees for time involved in getting everything ready for the audit and sitting in on the audit.

If the ATO find some wrong doing you can put the insurance policy in the circular filing cabinet.

Jason Pilfoot said:

thats what audit protection insurance is for

 

Never play Russian roulette with the tax man.  I don't think you can sponsor yourself or even your son/daughter. I don't think you can sponsor a full time employee as there may be FBT implications. But I think you can sponsor someone else/or business who is not directly connected with your business. I know someone whose business who was heavily involved in karting for many years and they sponsored events with signage and some drivers, I have no idea whether they claimed it, but I know over the years they would have generated thousands of dollars  income from other karters using their services so, it would seem that this is money well spent and easily justifiable. Can't see anything wrong with this. No different to my business sponsoring a horse race,  clients golf day or any other sporting event or team.

It's part of the selling process, and if you getting benefit from it, should be considered an expense. But I'm not an accountant. I personally haven't heard of audit protection insurance but my bookeeper and accountant are the meanest I've ever met and don't let me do anything dodgly yet still charge me a fortune.

FURZ

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