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Old 12-02-2006, 07:45 PM  
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Business License for horses

I don't know if this is the right spot to put this, So mods move if necessary.Thanks


A couple of questions
- My hubby has a co-worker whos lives near us and has horses. Well this guys tells hubby that we could file for a business license and get a tax break for stuff we buy for the horses. Is this true?

- If it is how much is it?

- I also was thinking about giving some lessons to some local people, not many only a few. Just enough to feed my horses. What type of license do I need for that?
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Old 12-02-2006, 08:15 PM  
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The tax break varies from state to state. Most states you need to have a certain number of horses and possibly a certain number of foals on the ground.
Usually, unless you have alot of horses, it's not going to be a large amount of money.
You can get a businees licence to give lessons but you will also need Lilability insurance. That can run into alot of money.. Even if your students sign a waiver, you will still need insurance.

I had a tax break and AG. exepmtion in NY, but I had 20 horses.
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Old 12-02-2006, 08:53 PM  
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Do you have one in FL, RH?
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Old 12-02-2006, 08:59 PM  
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No, I don't have enough horses for one here...
I am no longer breeding. When I move, I will be re-training OTTB's again, but it's just to darn hot here
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Old 12-02-2006, 09:14 PM  
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I claim my horses and dont need a business license.

I have a lot of horses going through my farm with placing the mustangs as well as my domesticated horses.

I have had more than 20 here and keep a certain number at all times and I sell a good many and have made a profit 2 years in a row.

I have been doing this since 1999.
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Old 12-03-2006, 12:34 AM  
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I think Florida is one of the more horse business friendly states (or at least the advertise it that way up here!), for many states, and all of Canada, you can usually only write off horse expences against horse revenue. You can write off the horse expences against other revenue IF you have a reasonible expectation of profit (usually must show profit within 5 years). It doesn't matter if you put all your money into your horses...the tax man may still consider it a "hobby" farm unless you have a solid business plan and show good expectation of profit.

There was a big case in Montana (or some northern state), a while back, where a man spent over a MILLION dollars building a cattle farm. Well, the market dropped on cattle, and he didn't show a revenue so he was unable to clain his losses on the cattle against his other revenue.

Something to discuss with an Accountant in your state either way.

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Old 12-03-2006, 08:01 AM  
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I can't speak to the horse side of businesses, but the thing that always stopped me from filing for a business license in illinois is the requirement of paying taxes quarterly. I'm not the best at keeping up withmy paperwork, and filsing 4 times a year would not work well for me unless I was able to really focus on the business.

And it was a while a go since I looked into it, but one advantage to fileing a business license on something that most people do as a hobby is that you could actually lose money at it for six years before they say, "Hey, wait a minute, this is a hobby!"

I know that because the stables I worked for in high school was in its 4th year of losing money when they hired me. I was with them through years five and six, but after that the owner turned into a real jerk, wanting us to operate in 100 degree weather, raise prices, cut corners on expenses wherever possible, etc. (He had always been a jerk, but let the manager run everything day to day. Then he started coming around once a week and being a jerk to our faces more often.)

We didn't make money for him the sixth year, and by year eight he sold the place. (I was no longer working there.)
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Old 12-05-2006, 10:33 PM  
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We claim our horses without a business license because I am training my two young ones. We claim all our feed,tack,barn,hay and horse trailers,etc. We also claim my husbands horseshoeing business but he does have a business license for that.
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