2009 Stimulus Act Will Help Some Horse Owners
Irregardless of your opinion of the 2009 Stimulus Act, it is good for some horse owners There are some provisions in the 2009 Stimulus Act that President Obama recently signed into law that actually helps the horse industry, here is Susan Allen to give us an update. Jeff, section 179 basically says that those of us who purchase horses or farm equipment and place it into service this year can expense up to $250,000 of the cost. Then there is another incentive offering a 50% bonus depreciation for horses and other depreciable property purchased and placed in service during 2009. This one works great for those trainers who compete or race horses because the animal must be new to the original use, for example, a young cutting horse prospect or a colt that has never raced. For those folks who buy a trained rope horse or a proven broodmare it doesn’t pertain because the use of the horse must commence with the tax payer. Remember the stimulus act now provides each of us with a state and local sales tax deduction for purchase of new vehicles through 2009. This deduction phases out though if your adjusted gross income is $125,000 or more. And for those who of you who have weathered some bad years in the horse industry, you will be able to extend the maximum carry-back period for operating losses to five years rather than two years that has been current law. I’m Jeff Keane.
