We Are Your Source For Solving Tax Problems Related To
Horse and Harness Racing, Pleasure Horses,
And All Things Equine And Farm.

         DON'T SPEND ANOTHER DAY WORRYING ABOUT YOUR TAX PROBLEM!-LET US SOLVE IT

 

Equine and Farm Industry Tax Issues

IRS Audits with Equine and Other Farm Issues

Did you receive a letter from the IRS that you are under an IRS audit?  Most IRS Agents no nothing about the horse business and this is both a good and bad thing. The good is that we have to teach them that a driver is not your hiring a limo to go to the theatre and that the veterinarian is not for your dog. Sounds funny but these are true issues we have had agents argue about with us.

Hobby Loss Issue

The IRS likes to argue that the horse business is actually a hobby because many people lose money most of the time.  The rules says you have to have a profit in two out of seven years to be called a business. But what if you don't?  Let us prepare your return and handle any issues in this regard.

Passive Activity Loss

The passive activity rules are another way IRS may seek to limit your taking your racing expenses. We are experts in this issue and have won many cases of this type. Basically our clients are encouraged keep very good logs we design that prove they meet the requirement they spent 500 meaningful hours on the horse business.

State Taxes/Canadian Taxes

Racing often means we as owners and trainers have to go where the money is. Hopefully this  means we get 1099's at the end of the year from various tracks in many states and perhaps Canada. This can mean filing 4-5-6 or 7 different state returns as well as dealing with taxes due to Canada and applying foreign tax credits paid on taxes paid to the Canadian government.

Equine and Farm Bookkeeping and Accounting Services