If we found someone to sponsor a few tourneys for the year. Would they be able to write that off at the end of the year? Is their a minimum number of tourneys they have to sponsor before they can write off? Have a sponsor asking about it. Any help is greatly appreciated.
Re: Sponsor
Posted by CPA on April 13, 2017, 12:49 am, in reply to "Sponsor"
Have him talk to his CPA.
Re: Sponsor
Posted by Vivid #13 on April 21, 2017, 9:29 pm, in reply to "Sponsor"
Sponsors can write off certain elements of it:
Uniforms = 100% Tournament entry Fee = 100% as Advertising and Promotions.
However, your sponsor should consult there CPA or Book keeper to determine if (based on their business type and other qualifying elements they can write off other potentials items - for example if they are a sporting goods company they could write off bats, gloves, etc as "promotional items", etc).
The most important thing is to limit how much you write off based on your income. You are not required to show a financial gain/loss against the advertising expense, but you are also not going to write 3500 (10 tournaments @ $350) If it's a side business that only generates $15K a year in supplemental income.