Originally Posted by
over4T
While, yes, advertising is a legitimate business expense and it is deductible be very careful if it's your business name on the car. I was a building contractor for many years and "sponsored" my own racing and my "advertising" costs for the operation were a nice deduction on my taxes.
IRS likes to think Joe Racer just has a hobby but when I was audited one time and took in my records, including a long list of customers that were gotten from race tracks and fans, they agreed and I had no further problems with them. . Good thing 'cuz I sure didn't make any profit from the actual racing and the deductions covered a chunk of the costs.