Quote:
Originally Posted by Saratoga_Mike
As long as you show a profit two out of seven years (I believe that's the test), you can deduct horse-ownership losses just like any other business. What advantages were there in the late 80s? I'm guessing maybe some sort of accelerated depreciation, but I'm curious to know. Thanks.
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Was curious so did a quick search. According to linked piece- from 1990- reason was simple. Lower tax brackets post 1986 TRA meant that after tax losses were much higher than before. Of course, willingness to absorb such losses abated when the after tax cost more than doubled.
http://articles.latimes.com/1990-08-...-132_1_tax-law