Yes hes hung like a horse literally haha 47



Owning a racehorse has several tax advantages. The quantity regarding reductions that is you'll qualify for will depend upon different factors including the number of horses inside training and the earnings received that year. You need to maintain accurate records in case of an IRS audit. The IRS guidelines are tricky to some horse owners to understand. Consult your tax professional if you include every questions.

Difficulty: Moderate Instructions

1 Organize all of your receipts. If you have every electronic receipts, you should print them from so that you boast some paper duplicate. Preserve the previous long time' records, because the IRS might audit a previous tax return.

3 Determine if you are exclusive active or passive owner according to the IRS guidelines. You will qualify for more deductions if you are exclusive active owner.

4 Add increase all expenses associated with horse ownership. The IRS guidelines allow you to subtract each costs that is are ordinary and necessary. To example, training supports from some licensed trainer are regular also necessary. The same applies for jockey fees also feed for the racehorse.

5 Subtract the total expenses from the total income to determine your bottom series. Your bottom line is the amount earned or lost that year with all racehorses you own.

6 Deduct additional expenses if you qualify because any active proprietor under IRS guidelines. These expenses include subscriptions to market publications, commissions to a bloodstock factor and depreciation regarding your racehorses.