Numerous requests have been received in regard keeping straight a horse business or a horse hobby as far as the Internal Revenue Service is concerned. The Breeders Advisor & Review helped with this answer.
Often when a taxpayer attempts to deduct a loss incurred in a part-time activity from which he derives pleasure, such as breeding, showing, racing, the IRS will require proof that the activity is a trade or business and not a hobby. Whichever it is depends on the intention of the taxpayer.
If you are in the horse business expecting to make a profit, this activity will normally be determined as constituting a business or trade. But providing a profit motive is sometimes difficult, especially when the activity has had large losses or a very nominal income, or has failed to produce gross income for several years. The expectation of profit must be a reasonable one. Most recently our courts have exhibited a more liberal attitude in regard to determining a taxpayer’ s intention. Now, to prove the existence of a profit motive, a taxpayer need only show that he has in good faith intended to make a profit. The prospect of a profit has a bearing on the good faith of the taxpayer, of course.
Because others do not share the optimism of the horseman, who is the eternal optimist, his judgement will not be penalized in most cases. Good faith in the profit potential of your operation is a must.
MISSISSIPPI SHOW DATES CHANGED
Officials of the Seminary, Mississippi Horse Show have announced that they will not have a show as originally scheduled for July 26. The show has been cancelled.
This date will be taken by the Walking G Stables in Carriere, Mississippi for a show. The show will be a member of the Mid-South Horse Show Association and the Heart of Dixie Walking Horse Association, with points being counted toward year-end points.
CEDARTOWN OPTIMIST CLUB
HORSE SHOW FRIDAY and SATURDAY JULY 11 and 12-5:30 P. M.
OVER $ 3,000.00 IN PRIZES
For Information and Prize Lists, Contact P. A. WIENER
SPRINGDALE DRIVE CEDARTOWN, GEORGIA 30125 PHONE 748-3257
Does your horse have these symptoms?
1 Stiff-gaited walk, or refusal to stand on all four legs are general symptoms of lameness. Check horse over carefully.
2 Swelling and heat on front of foreleg from knee to ankle. It’ s called“ bucked shins.” Soft, painless swelling around the fetlock is called“ windgall” or“ windpuff.”
4 Swollen hocks or pasterns or sensitiveness to touch suggest soreness.
6 Swollen tendons— swelling gives a“ bowed” look from knee to ankle, so it ' s called " bowed tendon.”.
i real him with Absorbine, the anti-lameness conditioner, as top trainers do. Strains and pulled muscles: after initial inflammation subsides apply Absorbine every hour, rubbing and massaging steadily but gently. As injury improves, apply less often.
Better yet, help prevent sore legs. Rub down and cool out your horse with an Absorbine body wash every day.
W. F. Young, Inc., Springfield, Mass. 01101
Available in the U. S. and Canada
Also a favorite with top trainers— Absorbine Hcoflex, the Veterinary Hoof Conditioner.
VricrinanI ]
Liniment