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Fleur-de-lis
12-18-2016, 02:36 PM
http://freedompartners.org/latest-news/end-tax-extenders-puts-tax-reform-reach/

While far from perfect, the continuing resolution that Congress passed last week may have finally put an end to one of the most egregious examples of corporate welfare in the federal government. Dozens of special-interest tax giveaways known as “tax extenders” were excluded from the CR, and are now bound to expire at the end of this year.

These provisions, which include handouts to racehorse owners, rum producers, and green energy companies, amount to nearly $20 billion a year.



Merry Christmas

AndyC
12-18-2016, 03:22 PM
http://freedompartners.org/latest-news/end-tax-extenders-puts-tax-reform-reach/

Merry Christmas

The tax "benefits" allowed horse owners is hardly a government handout. Tax credits such as the ones for energy conservation are handouts.

Tom
12-18-2016, 04:54 PM
Curious, what tax benefits should a horse owner get?
And why.

I can't think of any, but have no idea.

Clocker
12-18-2016, 05:32 PM
Curious, what tax benefits should a horse owner get?
And why.



If they get any, I'm sure Congress would extend them as a professional courtesy to an industry that puts out almost as much horse crap per capita as politicians.

AndyC
12-18-2016, 05:33 PM
Curious, what tax benefits should a horse owner get?
And why.

I can't think of any, but have no idea.

If a person has a business would you consider the write-off of an asset used in the business a benefit or a legitimate deduction against income? To put it another way, if you bet $9,000 and win $10,000 is your gambling income $10,000 or $1,000?

All so-called benefits received by horse owners have been paid for by the horse owner, they are not free.

lamboguy
12-18-2016, 05:37 PM
If a person has a business would you consider the write-off of an asset used in the business a benefit or a legitimate deduction against income? To put it another way, if you bet $9,000 and win $10,000 is your gambling income $10,000 or $1,000?

All so-called benefits received by horse owners have been paid for by the horse owner, they are not free.does this mean that an owner will have to pay taxes on his purses and not be able to deduct training bills, vet bills or jockey mounts from the earnings?

Tom
12-18-2016, 05:39 PM
Well I don't know, so I am asking.
Extended sounds fishy, so I ask.

If you claim a horse for 10K and he gets claimed for 25K, do you pay capital gains taxes?

How do you depreciate a horse?

AndyC
12-18-2016, 05:57 PM
does this mean that an owner will have to pay taxes on his purses and not be able to deduct training bills, vet bills or jockey mounts from the earnings?

The tax item concerned depreciation and the allowance of a faster write-off. No other type of items are affected.

AndyC
12-18-2016, 06:04 PM
Well I don't know, so I am asking.
Extended sounds fishy, so I ask.

If you claim a horse for 10K and he gets claimed for 25K, do you pay capital gains taxes?

How do you depreciate a horse?

Yes, you pay tax on the gain of the claimed horse.

You would depreciate a horse by a writing off a portion of its cost each year. If you sell the depreciated horse for more than the undepreciated cost there would be a gain. Example: horse purchased for $25K, owner takes $5K of depreciation each year for 2 years and sells the horse in year 3 for $25K. Normally if you buy something for $25K and sell it for $25k there would be no gain. Depreciation, however, lowers your cost for determining a gain or loss on sale. The owner lowered his income by using $10,000 of depreciation but then had to claim $10,000 of income when the horse sold. The benefit received by the owner is the ability to claim deductions earlier but in the end he still had no net gain on the horse.