Farm Bill to Benefit Horse Owners

FROM: The Blood Horse

BY: NTRA Release

House and Senate conferees for the 2007 farm bill announced May 8 they had approved a final version of the bill, which includes legislative language to amend the depreciation schedule for race horses. The final version of the farm bill is expected to pass both houses and be sent to the president for approval.

Under current tax law, race horses are depreciated over either three or seven years, depending on their age when “placed in service.” A horse is generally deemed to be placed in service when it begins training. Horses over the age of 24 months (from date of foaling) when placed into service are depreciated over three years; otherwise, they are depreciated over seven years.

Legislation contained in the 2007 Farm Bill allows an owner to recover his or her costs over the period of time that the horse is likely to race.

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