Vehicle Racing Tax Deductions8301420

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An additional method to assert deductions for racing fees rests upon the argument that the exercise offers a immediate gain to the business as an promotion undertaking. For example, in Ciaravella v. Commissioner, the proprietor of a company that sold and leased Learjets, also raced openwheeled cars. Ciaravella's organization reimbursed him for his racing actions as an promoting expenditure. The IRS argued that such reimbursement basically constituted a disguised dividend somewhat than the usual deductible payment. On the other hand, the court authorized the business to claim the reimbursement as an promotion deduction, partly, for the reason that Ciaravella's motor vehicle bore the company's logo and he used his position being a race automobile driver to create associations with rich race lovers considering buying Learjets from his firm.

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