Wondering about financing a herd expansion

[horsehug]

Thanks for the info

We have done it this way for 16 years now and even been audited and passed with flying colors.

And everything is on the up and up also on our forms. We claim all our horse related expenses, and also put down where our income comes from..... selling horses, and other mini related things like transporting sometimes and also hoof trimming. And they know we are depreciating our horses bought also, after they reach a certain age.

We have shown a profit when we were supposed to, except towards the beginning years where we were told we could get an extension so long as we could show we were really trying to make a profit, and we have done that too.

And like I said, the first person who did them for us for years specialised in horse businesses.

I would have thought the IRS would have found a problem before now.

But I will ask about the schedule F this year and see why they do not use it.

Thanks again for the info

Susan O.

 

[kaykay]

i need to correct myself we do file a schedule F. when i used to own my own craft business it was a C.

Kay

 

[mountain_waif]

....

 

[horsehug]

My question is why did the IRS not correct them and say that it should have been on a schedule F when they saw it was done on a schedule C?

Susan O.

 

[Mnmini]

Everyone needs to make choices for themselves.  This is just one of the few areas I am actually pretty knowledgable about and wanted people to have information to make an informed choice.  I didn't think you were trying to be argumentative and I'm not either.  And, it does not matter if the payments are of interest or principal, the tax implications are identical...  Would it surprise you to know that the name of my corporation is Investment & Tax Strategies, Inc. 

 

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Good for you Jill. While I don't work exclusively in the investment industry, I do work in the financial industry as well, and have reviewed the investment strategies of both our nation's largest banks, and their customers, and quite naturally their loans. That is MY specialty.

 

[Jill]

I think you have probably really mis-understood my objective and the spirit in which my opinions were given.

I'm a personal financial coach for affluent, mature individuals (as well as registered principal, stock broker, registered investment advisor, etc.). I do have some knowledge in this area so thought I could lend my insight. I own my own practice but prior to this, I was an officer at a local bank.

SO, with our professional lives, you and I probably have more in common than "just" the love of minis

So what if we don't agree with each other in this matter? If we really want to get this heated, we could start discussing something like feed programs or how to train a horse to drive.

Stick around and I think you'll find I'm actually fairly well liked and nice to people.

 

[Mnmini]

Jill,

I'm sure we have plenty in common as well. I very may well have mis-understood what you meant by your replies. It SEEMED to me that your point was that my suggestion was not a very well thought out one, and in fact, was a dangerous practice (per the article).

Where the comment that you are fairly well liked and nice to people comes into play, I have no idea. Have I said anything to indicate otherwise?

 

[Jill]

That wasn't at all how I meant to come across regarding your statement. I was showing another point of view but did not mean that yours is not valid. In fact, I had a brain storm (haha) later and posted here on this thread your idea really might work well because you could use the write off on the horse to offset the tax implications of replacing the 401(k) money w/ after tax dollars.

What I meant by "others think I'm okay" was that I pretty much figured something I had said rubbed you the wrong way, but that it wasn't deliberate. Basically that since as far as I know no one here doesn't like me (not sure I'm anyone's favorite, but I don't think I'm anyone's least favorite either), then probably it's just a misunderstanding.

The thing is if you and I had been talking face to face with this discussion, I think it would have left us with better feelings. It would have been apparent that we were just all bouncing ideas around. It's hard to get across in print the way things are meant to be taken.