Quote:
Originally Posted by Fuss
That's why I posted this in why horses only running for 2-3 years.
When you take the full value of the asset in 2-3 years using accelerated depreciation, vis-a-vis the animals economic value is consumed. Racing makes no sense.
So when you see a $450,000 yearling purchase running in a 40K claimer after 2 years, do not worry about those owners losing $450,000+, they've exhausted all the tax benefits and probably done very well.
Quickie tax benefits create booms because everybody is buying.. but inversely they also create Busts because they need to be sold after the quickie benefit is used.
People buying at the same time = Boom.
People selling at the same time = Bust.
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Nobody sells an asset worth $450,000 for $45,000 just because the asset is fully depreciated.
