Equine Tax Law

Tax Court Case Involving Cow Activity and Horse Activity

Written by John | 29 April 2013
Posted in Articles

The outcome of cases in Tax Court depend somewhat on the philosophical approach of the individual judge hearing the case. Some judges are more sympathetic than others to losses incurred by taxpayers in the horse and livestock industries.

Unrealized Appreciation Farmland Value

25 February 2013
Posted in Articles

Appreciation in value of a taxpayer’s farm or ranch property is often a significant issue in the context of the hobby loss rule. Although a “reasonable” expectation of profit is not required, the profit objective must be bona fide. It is the expectation of gain, and not the gain itself, which matters.

IRS Commissioner

24 September 2012
Posted in Articles

Wouldn’t it be nice if the horse industry had an advocate in the White House? Ann Romney, horsewoman, could be just such an advocate as First Lady. Her horse competed in the Olympic event of dressage, and she has long been an advocate for the use of horses for physical therapy.

Retired Taxpayers Lose Tax Court Case

29 May 2012
Posted in Articles

The Tax Court held that a married couple who engaged in a cattle and horse breeding activity were not engaged in a business, despite the full-time nature of the venture. The case was Garbini v. Commissioner IRS [T.C. Summary Opinion 2004-7]. Mr. Garbini, of Myrtle Creek, Oregon, listed his occupation as a rancher, and his wife indicated she was a housewife. Both taxpayers were retired during the two taxable years in issue, and for Mr. Garbini this was a full time venture. They had a net loss of $127,341 in one year, and $124,584 for a second year at issue.

Tax Deductions for Advertising and Promotional Expenses

02 May 2012
Posted in Articles

In the horse industry, as in other sports such as car racing and Olympics sports, people will pay to have their business name advertised in connection with certain events. For example, people will establish a new “classic” event, or “cup” to be an annual sporting event for a given sport. There are many horse show events and races that are “funded” by business, individuals or companies that use this venue as a form of advertising.

Equine Tax Law

Tax Court Case Involving Cow Activity and Horse Activity

Unrealized Appreciation Farmland Value

IRS Commissioner

Retired Taxpayers Lose Tax Court Case

Tax Deductions for Advertising and Promotional Expenses

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