just curious

[PaceAdvantage]

Originally Posted by Shemp Howard

Can't be any worse than the mess I was involved in at Penn National several years ago.

Oh really? Wow. This is news to me....

[green80]

Originally Posted by lamboguy

please explain how you can take a tax loss on a race horse against anything other than a race horse.

If you are actively engaged in the race horse business you can show a profit (or loss) just like any other business. You have to run you business in such a way that it is not declared a hobby. The IRS code spells out pretty clearly (if anything is clear with the IRS) what you have to do to be a business and not a hobby. I have raced horses for over 30 years and have not had a problem deducting losses against other income. It may be time to talk to a CPA familiar with the race horse industry.

[chadk66]

In fact I just wrote off my horse trailer, my pickup, my skid steer and will write off my barn next year. My mileage going to and from MN for hauling horses, etc. Am also going to go to TX this winter and buy a couple QH broodmares and raise barrel horse prospects. Those things are hot property up here. Nice thing about QH's is you can artificially inseminate them. So I can buy the juice from good studs down south without having to haul to them.

[deathandgravity]

I’ve been involved in a couple syndicates/partnerships. One of them being one of the high profile partnerships you see advertise on national TV during stakes races. Experience was so-so. We realized when we went into the partnership we were over paying for the experience. It was a shame we had a mid-level claimer that they constantly overreached with Alw & Stakes races. Filly could have had a nice career in the claiming ranks They (syndicate) seem to be going through a lot of staff turnover @ that time. (2007-2009) Was traveling a lot those days for work, so they did extend the owner’s box to me in NYRA & So Cal when I was in the area. (expensive way to get a box seat)
I would probably never do it again unless I had more disposable income then I knew what to do with. (that’s not an issue these days!)

Was also involved a local partnership @ EMD in 2011. It was a mess. I had a small %, but constant fighting between partners. Thankfully… horse never made it the track & ended up some little girls pet.

[Fager Fan]

Originally Posted by chadk66

In fact I just wrote off my horse trailer, my pickup, my skid steer and will write off my barn next year. My mileage going to and from MN for hauling horses, etc. Am also going to go to TX this winter and buy a couple QH broodmares and raise barrel horse prospects. Those things are hot property up here. Nice thing about QH's is you can artificially inseminate them. So I can buy the juice from good studs down south without having to haul to them.

You won't write off any of those things in a year. Large expenses are assets of the business and depreciate according to the tax laws. With a horse, it'll stay on the books, though depreciated, until the horse is sold (or dies or given away, etc until it's no longer an asset).

Just to explain further to the original questioner.

[Saratoga_Mike]

Originally Posted by Fager Fan

You won't write off any of those things in a year. Large expenses are assets of the business and depreciate according to the tax laws. With a horse, it'll stay on the books, though depreciated, until the horse is sold (or dies or given away, etc until it's no longer an asset).

Just to explain further to the original questioner.

If he placed those goods in services this year, he could write them off up front under Section 179 of the Code (capped at $500k, I believe) for his 2016 taxes (filed next year of course). Google "Section 179" - I'm sure there are tons of tax websites that provide all the details.

I think someone else asked how you can write off losses when owning race horses--- it works as follows:

If you're an active participant and show a profit 2 out of 7 years, you can write off horse-racing-business losses against other ordinary income. If you're audited, the IRS will most likely claim you're a passive participant unless you can show 500+ hours/year of active involvement.

[HalvOnHorseracing]

Old joke.

You know the way to make a small fortune owning race horses? Start with a large fortune.

[Shemp Howard]

Originally Posted by tanner12oz

I saw this posted on facebook the other day...what are the specifics?

Click on the link. They just opened up a 2nd partnership.

[chadk66]

Originally Posted by Fager Fan

You won't write off any of those things in a year. Large expenses are assets of the business and depreciate according to the tax laws. With a horse, it'll stay on the books, though depreciated, until the horse is sold (or dies or given away, etc until it's no longer an asset).

Just to explain further to the original questioner.

equine industry was granted an accelerated depreciation for those things this year. And as mentioned section 179

[rastajenk]

Originally Posted by chadk66

I happened to be training other horses for one of these silent partners. He was pissed this horse was doing so poorly. So he had me claim him for 5K.

Is that legit? Was it permitted, or was it one of those things that "got by"?

Originally Posted by chadk66

Nice thing about QH's is you can artificially inseminate them. So I can buy the juice from good studs down south without having to haul to them.

That just sounds nasty.

[chadk66]

Originally Posted by rastajenk

Is that legit? Was it permitted, or was it one of those things that "got by"?

That just sounds nasty.

100% legit. He discussed with the racing commission prior to claiming it. They told him since he wasn't listed on the registration papers he was good to go. Shitty part was, the trainer that had the horse was a very good friend and former trainer of ours. But I discussed with him and he didn't care at all they had given up on the horse. The complete story behind this horse is rather staggering.

[Stillriledup]

Originally Posted by HalvOnHorseracing

Old joke.

You know the way to make a small fortune owning race horses? Start with a large fortune.

there's a similar joke about betting, that goes, how do you make a million dollars betting on the horses?

start with 2 million.

[pktruckdriver]

I even have a 10% ownership with Drawing Away Stables, I have 2 horses and very happy with them.

It was always a Bucket List Item to have a "Winner's Cirlce Picture" taken with me at a NYRA Track, this gives me that opportunity.

Still it also gives you a few other little perks as an Owner, but nothing special.
You get shedrow access to see your horse, an Owners area for watching the races, these little things.

If you can do it I like these guys, DAS has to me has been great me, well that's my opinion.

patrick

[Donttellmeshowme]

Originally Posted by pktruckdriver

I even have a 10% ownership with Drawing Away Stables, I have 2 horses and very happy with them.

It was always a Bucket List Item to have a "Winner's Cirlce Picture" taken with me at a NYRA Track, this gives me that opportunity.

Still it also gives you a few other little perks as an Owner, but nothing special.
You get shedrow access to see your horse, an Owners area for watching the races, these little things.

If you can do it I like these guys, DAS has to me has been great me, well that's my opinion.

patrick

Once you own a horse 100% by yourself you will never want to join a partnership again.

[forced89]

Originally Posted by lamboguy

please explain how you can take a tax loss on a race horse against anything other than a race horse.

You file a Schedule B when you file your taxes. If there is a profit, it adds to your income. If a loss, it is subtracted from your regular income.