018: “Yes, you actually can legally write off your race car stuff if you do it the right way.” Feat: Jay Tompkins, CPA

Listen in as I sit down with fellow speed enthusiast and CPA Jay Tompkins to explore the intersection of high-octane racing and meticulous financial planning. Jay shares invaluable insights on managing the costs of our racing pursuits, including how to navigate sponsorships and the twists and turns of tax law for drivers aiming to write off expenses.

From discussing the journey through various racing leagues to a 24-hour endurance race at VIR, we cover the essence of competition and camaraderie. Hear about the critical role of tire strategy, car setups, and the inevitable mechanical issues that test a team’s mettle. Beyond the checkered flag, we also delve into the business aspects of racing, such as car ownership transitions and the complexities of racing logistics.

Jay and I emphasize the importance of long-term vision in scaling businesses, the significance of leading versus lagging metrics, and how having clear financial visibility is akin to racing with a clean windshield. For those of you running your businesses with the precision of a pit crew, this conversation is packed with guidance on building your team, structuring your company, and managing your finances to ensure you’re always in pole position.

In this episode, you will hear about:

  • Managing racing expenses, sponsorships, and tax deductions beneficial to racers.
  • Operational aspects of racing, including car ownership changes and logistics of nationwide races.
  • The importance of transitioning from cash-based to accrual accounting for clear financial visibility in business.
  • The value of long-term strategic planning in scaling businesses and creating viable exit strategies.
  • The necessity of consulting with a certified tax professional for optimizing business tax situations.

Resources from this episode:

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