Opening sound track (7 seconds): https://youtu.be/-Nefa1iJ3n8
A Big Corporate Owner writes off spending
The $ 10 BN Oshkosh Corporation spends what it takes on Pratt & Miller, acquired in 2022 and held as a wholly owned subsidiary. Professional sports car racing provides this 100-year-old below-the-radar manufacturer with brand recognition that is hard to beat.
These monies spent in the pursuit of victory come virtually free of taxes.
Racer Entrepreneurs write off spending
John Greenwood, like most racer entrepreneurs in their day, also spent freely in the pursuit of victory. That meant nothing was left to tax on income earned from selling Corvettes and parts to customers, after adding up the cost for tires, gas, travel, crew, lodgings, meals, entry fees, repairs (you name it) to go racing in IMSA, Trans Am and Le Mans.
Lou Gigliotti, also a prolific builder and driver of Corvette race cars, serves as another good example.
Larry Bailey, an entrepreneur with a yen for racing, is the founder of LSI/logical systems that sells services which help customers adapt to automation. Monies spent to support Kaylee Bryson to race in the Trans Am (and USAC Silver Crown) series bring attention to this behind-the-scenes enterprise would seem to be a legitimate write off.
Club racers write off as advertising & promotion
Jorg Nazario, an enthusiastic SCCA club racer from Puerto Rico literally practices what he preaches by offering services that cut taxes.
Another vintage racer friend built a thriving business that serves clients with their growing needs for security, both physical and online. Touting his behind-the-scenes operation opens his spending in a way that takes a bite out of taxes in his ongoing quest for speed.
A Corporation donates to a non-profit
Mike Yager, a marketing whiz and owner of Mid-America Motorworks donated 4 Corvettes from his collection the Pierce Arrow Museum, a non-profit in Buffalo, NY. His donation, highly valued as unique assets in the mid-seven-figures has stood the test of time for a decade. Portions carried 3 years against past income and portions carried 3 years against forward income are the heart of a novel strategy that reduced his taxes in a big way.
A dedicated collector at odds with the taxman
Ed Mueller had the vision to snag one of the two now legendary Big Block Grand Sport Corvettes that GM offloaded on the cheap to Roger Penske. He stored GS 002 in Pennsylvania among other highly valued cars in his collection under the watchful eye of a trusted expert. The cars became stuck in limbo because the DMV in New Jersey sought to tax these vehicles at face value where Ed lived. Several years later Ed paid taxes based a mid-six-figure gain when he needed to sell GS 002.
Photo credits: Visors Down, Richard Martin, Mark Spaulding. Music credit to the Beatles from 1966 album Rubber Soul.
Disclaimer: None of the above, in whole or in part, is intended be relied upon in any way, shape or form for legal, accounting and/or other purposes.