Tax Benefits for Horse And Cattle Business's
I’m Susan Allen, this is Open Range for Tuesday when I return a financial shot in the arm for small horse and livestock business’s. Put your thinking cap on, you need it or better yet meet with your accountant because if you are in the horse or cattle business or want to be, the Small Business Jobs and Credit Act of 2010 offers some big write-off incentives. The first allows you to expense up to $500,000 for purchases made in 2010 and 2011 and it applies to horses, farm equipment and other depreciable property. Without the bill the expensing allowance would have been $250,000 in 2010 and then dropped to $25,000 in future years. An example from the American Horse Council that illustrate how this works, is that if a horse business buys $750,000 of depreciable property in 2010 including $650,000 for horses that business can write off $500,00 on it’s 2010 return and depreciate the balance. Now the second incentive reinstitutes the fifty percent first year bonus deprecation for horses and other property. For a horse to be eligible it can’t have been used for any purpose before it is purchased for example a colt that has never been raced . So it would seem to me that these write off would work well for breed or performance prospect where purchasing a prefromace horse to retire as a brood mare might not qualify. Again check with your tax consultant . But what a year to build a barn or buy equipment. I’m Susan Allen
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