Passive losses and material participation
Every astute horseman is aware of the high costs associated with racing and breeding Thoroughbreds. Since expenses are a reality, a horse owner must be familiar with basic tax principles affecting their industry. One such principle is an "artificial loss". Artificial ...
Business Plan Checklist for Section 183 issues
The following checklist should be addressed in preparing a business plan. Whenever the Internal Revenue Service conducts a tax examination or audit of your individual or business tax return that ...
Guidelines for Business vs Hobby
The manner in which the taxpayer carries on the activity...
How to find a Horse Income Tax Specialist
Webster's Dictionary defines a Specialist as "One who devotes himself to a special occupation or branch of learning" and the definition of a Consultant, "An expert who is called on for expert advice."
Tax law requires active horse participation
Are you a passive investor or a material participant in your horse business? Why does it matter?
Keeping proper records
Anyone who enters the horse business soon learns that maintaining breeding records and other information about horses' pedigrees is essential to understanding the business and to producing a quality animal.
Partnership Investments
In the equine industry, partnerships are becoming an increasingly popular form of owning show and/or breeding stock. These include general partnerships, limited partnerships, and syndicates.
Operating your horse business as a partnership
The manner in which a taxpayer carries on a horse racing or breeding activity is one of the most important factors in determining whether the activity qualifies as a business rather than a hobby for tax purposes under current IRS regulations. An increasingly favorite form of doing business is the general partnership, which is the subject of this article.
So you want to own a horse?
There are many different ways to own a horse. The simplest form of ownership is sole proprietorship; that is, a one person owned and operated enterprise. The beauty of sole proprietorship is the ...
Passive Loss Activities
The Tax Reform Act of 1986 put into the law a limitation on the deduction of losses from any business activity in which you do not "materially participate", referred to as ...
Ingredients of a horse business plan
Eleven steps to writing a business plan for your ranch or barn.
How to avoid tax penalties
Penalties for failure to follow the tax law have been increased and made tougher over the past few years.
Deductions for horse expenses
Being involved with our friend the horse, whether as an owner, breeder, trainer or just a rider, not only concerns you with care, feed and lots of work, but also with our friend, Uncle Sam. Right or wrong, it may be difficult to ...
Check your travel expenses
The thought of an examination of your business income tax return provokes fear and worry. One item almost guaranteed to be on the examiner's list is a review of your travel and entertainment deduction. You ...
Business or Hobby - IRS guidelines help
Horse owners, whether their involvement is because of their love of the sport or purely for investment purposes, must be aware of the federal tax laws. The cost of owning a horse is such that it is nearly impossible to be part of the equine ...
How to find a horse income tax specialist
Although most tax specialists are also tax preparers, not all tax preparers are qualified to offer advise on complex horse tax questions, such as (1) What specific business tax benefits are available in owning a horse, (2) Is this an activity engaged in for profit, (3) What is meant by active or passive, (4) How does the sales tax effect the horse activity, or even ...
Partnership Investments
In the equine industry, partnerships are becoming an increasingly popular form of owning show and/or breeding stock. These include general partnerships, limited partnerships, and syndicates.
Keeping proper records
Anyone who enters the horse business soon learns that maintaining breeding records and other information about horses' pedigrees is essential to understanding the business and to producing a quality animal. From an accounting standpoint, good, accurate records are just as important as are the ...
Liens for the care of horses
If you own a horse that is boarded at a commercial stable or that is serviced by a veterinarian or farrier or if you have a mare that has been bred by another's stallion, you need to know something about liens on horses. Conversely, if you run a commercial stable ...
Feral Horses and Tort Law:
The law is old and well established regarding a horse owner's liability whenever someone other than the owner is injured by a horse that has either bitten, kicked, knocked down, or thrown the injured person. The horse owner will only be held strictly liable ...
To Rescue a Starving Horse
You are driving to work one morning, sipping your coffee, when you spy what appears to be a sick animal in a lot near the highway. You slow down to get a better view and discover a thin, weak, ...
Horses and Highways - A Tragic Mixture
Every horse owner's or caretaker's nightmare is a horse that is loose on a highway.
Hey, Mister! Is This Your Manure Pile?
The story of America has been in part the story of the urbanization of our land. Lands that were yesterday devoted to agricultural uses are today the sites of homes and commercial activities. In a brief time, ...
Equine Activity Statutes: 1 of 4
In one form or another, equine activity statutes have been enacted in about 35 states. The goals of these enactments are to more clearly define the duties of horsemen to the public and to tip the scales of justice in favor of the horseman.
Equine Activity Statutes: 2 of 4
When I last wrote a HorseLaw article on Equine Activity Statutes, it was 1995, there were statutes in 35 states, and there were almost no law opinions interpreting and applying them. Now, there are statutes in 44 states (Oklahoma added its statute in June of 1999) and there are at least a dozen cases dealing with one or another aspect of them.
Equine Activity Statutes: 3 of 4
In a previous HorseLaw article, I discussed the questions what persons and organizations are protected by Equine Activity Statutes and what are equine activities. Each of the 44 states with an Equine Activity Statute limits the protection of the statute to injuries resulting ...
Equine Activity Statutes: 4 of 4
Equine activity statutes protect equine providers from liability for injuries that have resulted from an inherent risk of an equine activity‹under some circumstances and with certain exceptions. There are now equine activity statutes in 44 states.
Dealing with Injuries to Children
If you're in the horse business, you're probably also in the kid business. A child (minor) is a person under the age of 18. Children occupy a special place in the eyes of the law.
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