Cristie Kerr Self Sponsors ... Tax Advantage?

[ThinkingPlus]

Watching the LPGA coverage this morning and noticed that Cristie was wearing a Kerr Cellars logo hat. Do you think she is really getting endorsement money and is this a tax advantage (advert dollars reducing wine business tax burden vs personal income tax)?

[joey2aces]

I would think that the advantages of 'self-promoting' outweigh the advantages of what other sponsors pay LPGA players. Especially since she is going to be 40 this year and is probably going to be hanging it up soon. She did win this year and is still competitive so that could be the reason why she is getting her other ventures out there now rather than when she isn't getting air time

[ClairefromClare]

I would think that the advantages of 'self-promoting' outweigh the advantages of what other sponsors pay LPGA players. Especially since she is going to be 40 this year and is probably going to be hanging it up soon. She did win this year and is still competitive so that could be the reason why she is getting her other ventures out there now rather than when she isn't getting air time

 

Agreed. We don't begin to know enough to speculate on the tax set up--what sort of entity is Kerr Cellars? Corporation, S Corporation, LLC? How many owners and in what proportions? Is it even turning a profit, at least for tax purposes? Never mind the individual-entity tax arbitrage.

[new2g0lf]

Kerr Cellars is an LLC and filed for trademark in 2015. It makes sense she would forego endorsement money for her golf hat in order to promote her own company. She may be able to write off the lost advertising money as a business expense but I doubt it. Kerr Cellars is her future and she's using the Tour to advertise it.

[TheInfidel]

Tax is a dark art. Those who say otherwise have the most cryptic of returns. Bend the rules don't break em lol.

[Soloman1]

Write off lost advertising money? I want to move to the planet that allows that...

[Pepperturbo]

If the entity is a legit corporation, there's income and tax advantages for the corporation and her personal tax liability. On the books, the corp pays her x-amt. How that amount is paid to her can vary. It can be in the form of stock or monthly dividend, no actual money needs to change hands.

[preiter20]

I think I heard it mentioned that she donates all profits from her wine company to charity, likely a charity she is affiliated with.

[potfh]

It's a write off. You just write it off. All the big companies do it.

[Timanator]

You can definetly write off the potential sponsor $. It can be valued as what KerrCellar's spending for that advertisement.

[grm24]

Watching the LPGA coverage this morning and noticed that Cristie was wearing a Kerr Cellars logo hat. Do you think she is really getting endorsement money and is this a tax advantage (advert dollars reducing wine business tax burden vs personal income tax)?

David Frost on the Champions Tour has done the same with his FrostWine business. At the very least it is good business.

[ThinkingPlus]

Thanks to everyone for all the insightful answers. I appreciate it.

[eagle1997]

It's a write off. You just write it off. All the big companies do it.

 

you don't even know what a write off is.

[taporsnap17]

Kerr Cellars is an LLC and filed for trademark in 2015. It makes sense she would forego endorsement money for her golf hat in order to promote her own company. She may be able to write off the lost advertising money as a business expense but I doubt it. Kerr Cellars is her future and she's using the Tour to advertise it.

 

How is it possible to expense money that you could have earned? Isn't it just a bit of a double whammy? Most places they say "you failed"

[tbowles411]

It's a write off. You just write it off. All the big companies do it.

 

you don't even know what a write off is.

As a business owner myself, you don't just "write that off." The bag and anything her logo is on becomes an advertising expense. This is self-promotion and if she's playing well enough to be on TV, she's getting massive airtime to display it. Wise and savvy move if you ask me.

[eagle1997]

It's a write off. You just write it off. All the big companies do it.

 

you don't even know what a write off is.

As a business owner myself, you don't just "write that off." The bag and anything her logo is on becomes an advertising expense. This is self-promotion and if she's playing well enough to be on TV, she's getting massive airtime to display it. Wise and savvy move if you ask me.