wildhorses
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- Aug 17, 2003
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As usual I have procrastinated doing my taxes, so have been working on them the past several days. For the last several years I have itemized my taxes claiming my horses as a business. I keep good records, keep all my receipts, etc. Like most people I have never been able to show a profit with the horses. For the last couple of years my tax preparer has cautioned that the IRS may view my horses as a hobby and not a business if a profit is not shown, however they do agree that I am running my operation as a business, not a hobby. And I know most people are probably in the same boat as me giving our economy. A while back I read an article on Yahoo about the 5 most commonly audited business, and Horse Breeders was on that list. Of course no one wants to go through the audit process, myself included. I advertise and promote, maintain a website, and of course do sell horses. But we all know that the economy hasn't been kind to the prices we are getting for our horses, not able to sell nearly as many, and the price of everything, feed, fuel, etc. has sky rocketed. Some years are worse than others and Vet expenses can be triple than some other years. As I sit here working on my taxes, I find that I am in the same boat this year (which I knew and probably why I procrastinated doing taxes).
I am wondering everyone elses experiences, and if anyone is finding themselves in the same position I am in. I hate to say that I am bringing in more income from my horses than I really do as I don't feel that is the right thing to do, and I don't feel I should have to lie about my actual expenses to make it look like it's not costing me as much as it is. But maybe making it look like I break even is the only choice at this point....or is it best to just no longer claim the horses as a business. I do work a full time job, so the horses are not my only source of income, and I do have deductions for my job as well.
I am meeting with my CPA next week to prepare my taxes, but would like the advice of some of the people who are maybe in the same boat as me, or have been down this road before. Any input would be appreciated. Thanks in advance!
I am wondering everyone elses experiences, and if anyone is finding themselves in the same position I am in. I hate to say that I am bringing in more income from my horses than I really do as I don't feel that is the right thing to do, and I don't feel I should have to lie about my actual expenses to make it look like it's not costing me as much as it is. But maybe making it look like I break even is the only choice at this point....or is it best to just no longer claim the horses as a business. I do work a full time job, so the horses are not my only source of income, and I do have deductions for my job as well.
I am meeting with my CPA next week to prepare my taxes, but would like the advice of some of the people who are maybe in the same boat as me, or have been down this road before. Any input would be appreciated. Thanks in advance!