News

Arabian Horse Farm Loses Millions of Dollars (tax case)

Posted by on May 8, 2015 in News | 0 comments

A Significant Victory in a New Tax Court Case By John Alan Cohan, Attorney at Law       A new Tax Court case involved several million dollars of losses from 2004-2009 in an Arabian horse farm owned by Henry and Christie Metz.  [Metz v. Commissioner,T.C. Memo. 2015-54.] The Metzes specialize in Straight Eqyptians, and established their horse farm in 1991, at a time when prices of quality Arabians had dropped significantly from the 1980s.  The Metzes believed that prices had reached their bottom. Mrs. Metz worked full-time on farm advertising, marketing and promotion, drawing on her fine-arts background.  In 1995 the taxpayers bought a farm in Naples, Florida for...

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Tax Tips for Horse Business Owners

Posted by on Mar 28, 2014 in News | 0 comments

(used by permission from author) By Kathleen A. Reagan, Esq. Congress recognized a long time ago that taxpayers will try to claim federal income tax losses for activities at which the taxpayer has no genuine intent to create profit. The so called Hobby Loss provisions are found at section 183 of the Internal Revenue Code. Horse owners are a prime target of IRS “hobby loss” challenges, reflecting, of course, the fact that it is very difficult to actually make money in horses, yet many engage in the pursuit for the sheer enjoyment of it anyway. Here are seven tips that will make it easier to survive a so called “Hobby Loss” audit. 1. In the planning...

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Think you’re protected by Georgia’s Equine Liability Law? You may not be!

Posted by on Feb 5, 2014 in News | 0 comments

By Christopher C. Chapman, Attorney at Law, www.smithwelchlaw.com, and GHC President   Georgia has an Equine Liability statute that offers liability protection relating to equines and equine-related activity, but it is not an absolute shield to liability involving equines. On the subject of equine liability, most horse owners are aware of the requirement to post a sign with the warning that, “Under Georgia law, an equine activity sponsor or equine professional is not liable for an injury to or a death of a participant in equine activities resulting from the inherent risk of equine activities, pursuant to Chapter 12, Title 4 of the Official Code of Georgia...

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Equine Tax Parity Act Introduced

Posted by on Mar 13, 2013 in News | 0 comments

On March 6, Congressman Andy Barr (R-KY) introduced the Equine Tax Parity Act (H.R. 998), which would make horses eligible for capital gains treatment after 12 months, rather than 24, similar to other business assets. Under the current federal tax code, gains from sales by individuals of property used in a trade or business, including horses, qualify for long-term capital gains and are subject to the maximum capital gains tax rate of 15% for taxpayers earning less than $450,000 or 20% for those earning more. Since the individual income tax rate can go as high as 39.6%, the lower rate is a real advantage. Horses held for breeding, racing, showing or draft purposes qualify...

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Fiscal Cliff – Tax Changes Affecting Horse Owners

Posted by on Jan 3, 2013 in News | 0 comments

From the American Horse Council   The country went over the “cliff,” but, like a bungee jumper, after a short fall it was pulled back up to the precipice.  Congress’ passage of the American Taxpayer Relief Act of 2012 in 2012 and the President’s signing it in 2013 broke the Congressional impasse and got the country past the Fiscal Cliff for now.  We now sit on the bench next to the sign indicating a “Scenic Overlook.”  But we can relax and enjoy the view for only a few months, until the delay of the across-the-board budget cuts expires and it comes time to raise the U.S. debt limit. The following is a summary of some of the provisions in the new law...

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Atlanta Program Provides Equine-based Activities for Wounded Warriers

Posted by on Oct 23, 2012 in News | 0 comments

Fox 5 Atlanta recently did a story on the Calvin Center’s Horses & Warriors program. Read the story and see the video at http://www.myfoxatlanta.com/story/19687480/horse-therapy-aids-veterans.     For more on the Calvin Center’s program,...

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