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 .
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