Helping Your Child’s Career
We all want our children to succeed in life, but this father took it to the next level AND was able to claim deductions in the process.
The man who owned a profitable real estate development business decided to help his son, who was a motocross racer, by having the real estate company become his sponsor. In two years, they paid for equipment as well as $160,000 for motorcycles, but the funding ceased when the kid turned pro.
Since the firm obtained favorable construction financing deals and new business connections through the sponsorship, the Tax Court agreed that most of the $160,000 were a deductible business expense
