Horse ownership taxes

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Toccet02
Leading Sire
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Location: New York City

Horse ownership taxes

Postby Toccet02 » Sun Mar 06, 2016 2:16 pm

Hello there . . . wanted to surey people to see how they handle horse ownership on taxes.
I have an accountant we like, who I need to use again this year, but I don't think he knows anything about horse ownership.
I got a referal to a "best equine accountant", but don't know ettiquette of asking his advice without offering to pay. I mean--what WOULD I pay?
I thought I could pay him to do a worksheet for me, but I don't think a worksheet is neccessary.
Anyway---I know I'm to keep expense/income logs, and also to track my time invested in the sport, as well as magazine sub costs, etc. to prove I'm in it to make a profit.
So--what would you do/what have you done, if you own/part own while having an otherwise normal life?
Thanks!
All shouting does is make you lose your voice.
----Arrested Development

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TJ
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Location: FL, NY

Re: Horse ownership taxes

Postby TJ » Sun Mar 06, 2016 3:03 pm

Toccet02 wrote:Hello there . . . wanted to surey people to see how they handle horse ownership on taxes.
I have an accountant we like, who I need to use again this year, but I don't think he knows anything about horse ownership.
I got a referal to a "best equine accountant", but don't know ettiquette of asking his advice without offering to pay. I mean--what WOULD I pay?
I thought I could pay him to do a worksheet for me, but I don't think a worksheet is neccessary.
Anyway---I know I'm to keep expense/income logs, and also to track my time invested in the sport, as well as magazine sub costs, etc. to prove I'm in it to make a profit.
So--what would you do/what have you done, if you own/part own while having an otherwise normal life?
Thanks!

Hi Toccet,
I'm sure they would advise you, but I doubt it would be free. Here is one where the firm offers a one hour consultation service fee to anyone in the thoroughbred business. This consultation includes review of tax returns and business plans. Scroll down to the bottom of this link and it will mention the hourly fee. http://www.greenco.com/insights/equine- ... down-track
This is another link from the same company that explains what the IRS will be looking for.
http://www.greenco.com/insights/hobby-l ... e-industry
This info could be of help...possibly for your current accountant to understand what they are looking for and your accountant might be able to figure it out, it's not that far out of the realm of business profit and loss.
TOC (TB Owners of California) explains partnership and taxes as related to partnership investors. TJ
http://www.toconline.com/racingownershi ... d-the-irs/

vaponydoc
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Location: Virginia

Re: Horse ownership taxes

Postby vaponydoc » Sun Mar 06, 2016 6:42 pm

Hi,

I have filed Schedule Cs for a couple of horse-related businesses. It should not be hard for your regular accountant to figure it out.

I found useful information on this website: www.stallingspainthorses.com/tax1.html# ... vs%20Hobby

Some of the details may have changed (as tax law changes year to year) but it gives a good general overview.

Good luck.