Tax Tips from the Barn Faeries
Submitted by: Judy Samuel
Date Added: 1/12/2005
Hello, everyone! It's nearly time to file income taxes again. Don't
you wish you could deduct your "dependent" horses? Well, if you are
operating your farm as a business there may be some ways to ease your
tax burden -- or, if you've made a profit, you may owe your Uncle Sam
a few extra dollars.
Check with your CPA, accountant or tax preparer! Are your horses a
business or a hobby? If your equines are a business, there are some
small extra chores involved.
Keep careful expense and income records throughout the year. There
are simple, inexpensive software programs for your computer if you're
so inclined, but a sturdy notebook and a shoebox may be all you need!
Keep your receipts (that's where that shoebox comes in handy!). Maybe
that new hoofpick and tub of apple treats didn't cost all that much,
but many little purchases can add up to big money by the end of the
year.
Keep copies of all bills of sale - it's simple to see how much income
you've generated... and you can easily contact the buyers when next
year's foals are ready for new homes.
Write things down every day. Memories and good intentions can be
fragile things.
Consider opening a separate bank account just for horse-related use.
Saves a lot of work at tax time.
Happy itemizing!!
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