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Hi Wendy
There have always been write-offs for horses as a business-- although 
after Reagan took off the huge write-off for depreciation in the 80's, 
the market crashed for investors. You see the law changed then from 
crediting "passive investors" to having to be actively involved in the 
business (hands-on") to qualify for the write-off. At least, this is how 
our accountant explained it to us back then.
It sounds like they are increasing the write-offs now, however, I am 
sure one would still have to show that they were seriously involved the 
horse business to get a write-off as it is a business write-off. The 
tricky part comes when they ask you to prove you have horses as part of 
your business--- not just a hobby. I would suspect that most here would 
not qualify. Now the proof is really easy if you have invested in a 
racehorse, and as yet, I am not sure if anyone has attempted to use 
endurance race investments as a write-off without being seriously 
involved in breeding or selling. Perhaps someone on this list would know 
that.
Boy, if you could write off a hobby, my husband would be first in line 
with his golf clubs!! :-)
Bette and Bunny (who feels he is a business write-off now that there is 
a movie about him!)

Wendy Harris wrote:

> Read this story today on line today (The Detroit News) Michigan.  Was 
> wondering if anyone could shed some more light on what they know about 
> this.
>
> I only get the archives so if you could e-mail me back directly it 
> would be sincerely appreciated!
>
> Thanks,
>
> Wendy-Michigan
>
>  
>
>  
>
> http://www.detnews.com/2004/specialreport/0409/27/a06-285066.htm
>
>  
>
> Monday, September 27, 2004
>
> Horse owners can write off $100,000
>
> By Melvin Claxton, and Ronald J. Hansen / The Detroit News
>
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> <https://secure.detroitnewspapers.com/circ/cgi-bin/delivery.plx?selectedpaper=detnews> 
>
>
> It’s a tax deduction most Americans know little about and few but the 
> wealthy use — the horse write-off.
>
> Anyone who purchased or leased a horse after Sept. 12, 2001, can now 
> write off $100,000 in horse-related expenses each year. Under the law, 
> horse owners can deduct food, stabling, transportation, insurance, 
> veterinary care, and even local and state taxes for the animal.
>
> The tax change expanded an existing exemption originally intended for 
> far less affluent taxpayers.
>
> The horse deduction was created to aid farmers and ranchers when 
> horses were a critical part of their operation. But in recent years, 
> the break has become a shelter for the rich, many of whom own horses 
> for pleasure.
>
> Congress sweetened this exemption in the months after the September 11 
> terrorist attacks by allowing horse owners and businesses to write off 
> their expenses more quickly.
>
> In 2002, President Bush and Congress allowed horse owners to write off 
> half the purchase price of a horse within a year. Under the old law, 
> owners took seven years to write off the purchase.
>
> The faster depreciation schedule was set to expire earlier this month. 
> But Congress has already extended the deadline to December and may not 
> allow it to end at all. That’s because the horse provision and other 
> deductions were tied to a popular exemption that affects many 
> taxpayers — the child tax credit.
>
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>
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--
Bette Lamore
Whispering Oaks Arabians
Home of Bunny and 16.2h TLA Halynov
who lives on through his legacy Hal's Riverdance!
http://www.arabiansporthorse.com

Always remember: "Life is not measured by the number of breaths we take, but by the moments that take our breath away." (George Carlin)




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